US Senators Unveil Plan Curb Oil Futures Speculation

[timbo]

Quote from clacy:

Where were all of the greedy speculators back in 98 when oil was trading at $11????

Can speculators not short crude as well as long?

Unbelievable. Anything the government touches turns to shit but now they're going to come in and save the day?

Spot on!

 

[stock_trad3r]

senators are useless

 

[bkveen3]

I don't know enough about this plan to say if it takes the right measures or not. But what I can tell you is that IMO oil futures are being driven by speculation. There is another topic on ET that goes in depth on this. Although fairly long it is very eye opening. I would suggest anyone wanting to know more about speculation in the oil markets should read it.

http://www.elitetrader.com/vb/showthread.php?threadid=126809

 

[Cutten]

Quote from TheWilling:

The immediate oil price movement versus the dollar is due to the ability provided in the futures contracts, or you would not be seeing immediate price responses.

The clientele effecting these hedges are largely served by US firms, which have invented these capabilities.

However, if the dollar were to rise against other currencies, which could be caused by a rise in interest rates, oil prices would drop rather dramatically.

The dollar rose recently - oil went up. So much for your correlation.

 

[Cutten]

Quote from vince111:



where there is profits there is criminal activity.

Whoever would have guessed that Karl Marx posted on Elitetrader?

 

[Enfinity]

http://thomas.loc.gov/cgi-bin/query/z?c106:H.R.5660:

http://en.wikipedia.org/wiki/Commodity_Futures_Modernization_Act_of_2000

For all the rookies that know it all...

Quote from CoralReef:

So let me get this straight. ALLLLLLLLL these years our commodity markets were the worldwide model for finding an equilibrium price level for ags, metals, energy, etc. and the best price discovery mechanism that exists.


NOW all of a sudden the shit don't work?

These politicians should go back to their hookers and gay sex and leave the financial/fut markets alone.

 

[Cutten]

Quote from Enfinity:

http://thomas.loc.gov/cgi-bin/query/z?c106:H.R.5660:

http://en.wikipedia.org/wiki/Commodity_Futures_Modernization_Act_of_2000

For all the rookies that know it all...

Yeah because only energy, and no other commodities, have rallied massively since 2000 *rolleyes*

 

[Enfinity]

Cutten -

Over or under $125 on oil September 1, 2008?

 

[newbunch]

Quote from vince111:

where there is profits there is criminal activity.

"It is a socialist idea that making profits is a vice; I consider the real vice is making losses." Sir Winston Churchill

 

[Brandonf]

Quote from CoralReef:

So let me get this straight. ALLLLLLLLL these years our commodity markets were the worldwide model for finding an equilibrium price level for ags, metals, energy, etc. and the best price discovery mechanism that exists.


NOW all of a sudden the shit don't work?

These politicians should go back to their hookers and gay sex and leave the financial/fut markets alone.

I agree