Why the oil pit needs to be closed down, traders sent back to McDonalds

hahahaha hilarious!

OPEC is the oil mafia, full stop.

Traders are like glorified real estate agents, always pushing the price up artificially going long or going short. Creating value in things that dont exist (derivative traders) while being ass kissed by brokers everyday who make you beleive they are your best friends.(NOT)

About back to mcDonalds? I dont know any trader that ever worked in McDonalds, however, considering the pay of some traders in europe (Sweden and Holland high tax areas), being a manager in McDonalds seems like a better alternative!
 
Quote from EMRGLOBAL:

I am in the Oil industry. I not only own a % in physical wells but I raise a lot of money a year to drill domestically. I have to say that, we who own the physical oil do believe that the "Traders" push the markets.

Now with that said, we are not against the traders. In fact in Texas we are light sweet crude not brent crude.

The Speculators are there to play a game. That is all. Some go long, some go short. Is the Crack Spread outa wack. Sure, historical so.

Do we flair off gas due to the low prices, yes sometimes..

The OIL MAFFIA is not the traders its OPEC. We have enough Oil and Gas in this country and in the Gulf to get off the TIT of OPEC.

However, the NYMEX and DUBAI floors are very powerful and have a lot of influence on breaking away from OPEC. They do not want that to happen.

But, with that said, blaming the traders is just a way to divert you from the true ASS CLOWNS, like OBAMA and OPEC. Obama funds Columbia Refineries with US TAX DOLLARS but does not want to drill here. Obama funds Brazil oil drilling and praises the 3rd world for drilling but does not want to drill here in the US.

OPEC is just a bunch of clowns in general.

Look between the lines and maybe you will find the truth.
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That guy 777 has to be the most stupid guy on ET. He Knows shit about the industry pal. He said that the Floor need to be closedf down But he ignores that the WTI is the cheaper crude grade thanks to the speculators. The same with Metals. There are 86 metals out there, only 13 of them trade in the centralized exchange market and those 13 are the cheapers metals in the market. Close down the exchange and the US will cry blood, the crude oil will top 200 in matter of months and the volatility will increase well over 400% like the potato and onion markets back in the days. The Petrodollar is whats makes the US the world power player. I will love to see what will happen to the transportation industry if they have to hedge one on one in the OTC.
 
Interesting , Rubibond... It would be great to make the public aware of these facts... Nobody knows the cheapest commodities are the one listed on regulated exchanges.
 
More pearls of wisdom from someone leasing my seat.

Quote from local:

Margins for some contracts has increased 10 fold over the past 5 years and funds are carrying record positions. Increasing margins won't do anything.

Regards, local
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Barron's, May 03, 2011:

Silver prices are continuing to fall this morning after the CME Group (CME) said that initial margin requirements for silver contracts are going up for a third time in a just over a week.

Futures slid nearly 2% in Asia and July contracts were last trading down $2.689 at $43.395 on the Comex.

In pre-markets, the iShares Silver Trust (SLV) was down 0.8% at $42.50 a share and the Global X Silver Miners ETF (SIL) was slipping by 0.5% to $26.31 a share.

The CME’s initial margin requirements will increase to $16,200 per futures contract, up from $14,513. Maintenance margins were increased to $12,000 from $10,750. The changes are effective after the close of business today.
 
Quote from EMRGLOBAL:

LMAO... you are correct in one sense. JOE PUBLIC has very little clue about Speculation let along the Financial Markets. Hence Joe Public believes in Dollar Cost averaging and buying a home on a JUMBO load, 6x his net worth, thinking he is the next Trump.

Of course there is the exception to JOE PUBLIC, but it's a very small % of the public. [/B]
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There isn't anything square about dollar cost averaging.
 
Quote from chapper:

as someone who is trying to understand this... can you guys comment on the following:

http://www.chicagonow.com/blogs/chi...-politicians-and-the-oil-speculator-myth.html

basically he is saying that the speculation blame game is crap b/c the spot market drives the futures, not the other way around. I am not sure I understand that... if traders are going long futures, wouldn't there be some kind of arb going on between spot and futures?

Thanks in advance...
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This is true. It's true for most physical markets. The cash market is multiples larger then the futures market. If you own the underlying physical, you set the price. It's that simple. The reason being is that anyone short futures has to actually deliver the physical. So he has basis risk essentially, i.e the difference between futures and cash. Markets like stocks can be manipulated much easier because there is no delivery process. It's all about the float with stocks.

The physical market for oil is predominately in Switzerland and is controlled by the Marc Rich's of the world. Their activity dwarfs the futures markets. There is an arb there but you have to hold the physical to capture it. This is why JP Morgan and Goldman got into the storage game so they could trade the arb. But the arb does not bring prices into alignment in the open market but rather at delivery, it's called a basis trade. All futures markets have a basis trade in some form. It's a huge game in fixed income as well.
 
you're talking nonsense, as usual.

you wouldn't know a rigged game if it bankrupted you. oops, that already happened, didn't it.
 
Quote from stock777:

you're talking nonsense, as usual.

you wouldn't know a rigged game if it bankrupted you. oops, that already happened, didn't it.
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You know stock777, there are some people on this site that are trying to learn something. You don't have to kill every thread do you? If you would read more and post a little less, you might learn something as well instead of screaming all day about HFT's and how hard it is to trade.
 
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