Please point out where I posted the gubment should actively control prices? Your inability to comprehend basic logic is par for the course for someone who is an active enabler for dubyas culture of malfeasance. are you suggesting that the gubment has no say on how the markets should operate? If that's the case I should open a broker dealer and front run my clients order flow. On another note. Are you demented, or do you just suffer from dementia?
Gee, as soon as they heard they could not CORNER the market, the oil price fell like a fat lady on an icy street. No, there's no manipulation......
do I hear $57 a coming for "black gold "? sheesh ... will some buyers come in ? I need my silver and corn to rally
I remember well the 1970s, the petroleum distributor I worked for had to go to the state set-aside program for more product. You had to "upward certify " to the EPA also. I do not think we want to return to those days. Price will regulate demand.
-- Market was already falling before any CFTC talk. -- Baltic Dry Index (shipping rates) is down hard too after rallying in sync with oil. Can't blame it on speculators b/c none are allowed there! Indeed it is far more volatile than oil, probably because immediate supply and demand push it around wildly without specs to cushion things. http://www.wikinvest.com/index/Baltic_Dry_Index_-_BDI_(BALDRY)/WikiChart -- Overblown inflation fears have subsided for now -- gold, interest rates, stocks all showing the same thing. Reflation trade over. Deflation fears may have resumed. Employment report was the first catalyst and synched with seasonality of oil/end of the driving season. -- We're in a phase where commodities and stocks tend to move together. I'm not saying "speculators" can't move prices, esp larger investment flows, just that this correction is normal. Remember that speculators are shorting this market too. Over time speculators reduce volatility, unless perhaps a boom/bust cycle comes into effect. Nice if they got rid of commodity ETF's though. A question: is there an uptick rule on USO? That would be ridiculous. Oil shouldn't be traded like it's a stock. Shipping rates are devoid of speculators. So why were they up into 2008 even more than oil or other physical commodities? I think you need to take a trip to China and see all those brand new bustling cities that make US metro areas look like quaint villages. Then maybe you'll have some clue as to why there's been volatility in resource prices.
look ... here is my opinion on this somehow whether though OPEC or "big money" wishful thinking we got ourselves up to the low $70's a short time ago but this selling has been overdone sure we might be headed to $50 - $55 but I tell you folks ... be careful what you wish for those who blame spec's for the volatility in oil had better start investigating the movements in everthing else when and if the happen and furthermore ... I hope you shorts ( and stupid quant based BOTS running OPM using leverage to kill others ... ) don't you realize that if everthing goes to ZERO you will have made alot of money but we will be in such a deep pile of doo doo your other assets will go to ZERO and you will find yourself looking for "butts" in the garbage can like everyone else :eek:
Just a couple of notes: The USO ETF changed their prospectus to include OTC products into their inventory management policy. Smart on their part - size is done OTC with blocks (Just look at the ICE and ClearPort block trade volumes). Somehow I am apathetic to all of this political hot air and posturing. Do any of you believe this will affect size intraday speculators? I'm curious. For example, on Friday I had 2000 buys and 2000 sells on Nymex but carried a smallish butterfly over the weekend (50x100x50). Let me know what you think.
Why There Should Be More Oil Speculation, Not Less http://www.time.com/time/business/article/0,8599,1909756,00.html