Was there any news that sparked the sell-off in Crude ?

[Landis82]

Quote from fluttrader:

Any news ?

Yes, the Senate is voting against the "Enron" loophole, that permits players from maxing out their positions under the CFTC on the NYMEX, and then heading over to the ICE to buy even more contracts.

The ICE has no position limits.

The Congress wants the CFTC to limit the players max positions across ALL exchanges, primary OR secondary ( ICE ).

 

[brocklanders]

Quote from Landis82:

Yes, the Senate is voting against the "Enron" loophole, that permits players from maxing out their positions under the CFTC on the NYMEX, and then heading over to the ICE to buy even more contracts.

The ICE has no position limits.

The Congress wants the CFTC to limit the players max positions across ALL exchanges, primary OR secondary ( ICE ).

As long as they call it the "Enron loophole" it will have a negative connotation and will probably get closed down. They should re-introduce it as the "Electronic Market Freedom Act of 2008" and maybe they can re-open the loophole later on (kinda like they did with the "Patriot" Act).

Seriously, I have no problems with position limits across all exchanges but this talk about raising the margin limits to 100% is just insanity and I hope that more rational voices prevail on that issue.

 

[Compulsive]

Great, now I can buy gasoline at Walmart or $3.63 a gallon instead of paying $3.68!!! HURRAY for the sell off!!!!!!!!!

 

[Compulsive]

Quote from MAESTRO:

Nah, they found a missing truck full of oil in the outskirts of Chicago!

I am heading to Chicago to pick it up

 

[Landis82]

Quote from brocklanders:

Seriously, I have no problems with position limits across all exchanges but this talk about raising the margin limits to 100% is just insanity and I hope that more rational voices prevail on that issue.

It has nothing to do with raising margin limits. It is about creating uniformity of position limits across ALL exchanges, including those that are electronic like ICE

http://levin.senate.gov/newsroom/release.cfm?id=283461

Introduced last Fall.
Nothing new.

 

[Jayford]

This thing was way overbot, and then you had long covering.

there was news however. OPEC stated that they see a drop in demand with the higher prices. Don't know if this had anything to do with it cause I'm not a fundamental guy,but there was news.

 

[makloda]

Crude retracing nicely. Almost green for me CL June.

 

[brocklanders]

Quote from Landis82:

It has nothing to do with raising margin limits. It is about creating uniformity of position limits across ALL exchanges, including those that are electronic like ICE

http://levin.senate.gov/newsroom/release.cfm?id=283461

Introduced last Fall.
Nothing new.

I know. The margin increases are in the proposed energy bill yet to get voted on, not the Enron loophole. I was making a comment on the climate in D.C... particularly trying to blame high crude and gasoline prices on traders.

 

[eagle]

Guilty driver.

Quote from MAESTRO:

Nah, they found a missing truck full of oil in the outskirts of Chicago!

 

[piggie2000]

They just rpped the guts out of following oil shorts there. BRUTAL