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  1. #1 A Nationwide Investigation into Manipulation of the Oil-Markets. 
    An Adversary of Linda #'s
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    The Commodity Futures Trading Commission says it launched a nationwide investigation last December into possible manipulation of the oil-markets.
    snip
    The “Enron loophole” has been around since 2000, when the Commodity Futures Modernization Act was passed.

    It lets oil traders buy and sell oil futures contracts electronically in markets outside of the CFTC’s jurisdiction, such as the commodities exchange in London.However, they are not subject to the same CFTC reporting requirements.

    Essentially what’s going on here is oil traders of U.S. crude now can make electronic trades in offshore markets. US “computer terminals will be governed by US regulation, because the computer terminal is located in the United States.”

    For now, the CFTC says it struck a deal with the Intercontintental Exchange along with Britain’s Financial Services Authority to get more daily trading data on large trader positions in oil futures made on the ICE Futures Europe platform.

    ICE oil futures are traded electronically on computer terminals across the US, using prices linked to oil futures trades on the New York Mercantile Exchange.

    However, they are not subject to the same CFTC reporting requirements.

    Whether any of this legislation will lower oil prices is unclear at this moment, as China and India suck up oil at record amounts and OPEC refuses to ramp up production (don’t you wonder whether OPEC members are saying to themselves, why invest in Citigroup or Merrill Lynch when we can let oil sit in the ground as oil will continue to rise?)

    A stronger dollar would help, too, as the debasement of the US dollar has caused oil, traded in dollars, to rise. A rising dollar may have helped push oil prices lower Thursday, as crude futures for July delivery fell $4.41 to $126.62 a barrel in New York futures trading.

    http://emac.blogs.foxbusiness.com/20...l-speculation/
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  2. #2  
    Senior Member Constitutionally Speaking's Avatar
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    The only reason speculators have as much impact as they do is because the difference between supply and demand is so slim that any disruption can potentially mean supply cannot meet demand. If we had enough supply there would be no ability nor would there be the incentive to bid up the price so dramatically. In fact there would be a disincentive because you would lose your shirt.
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  3. #3  
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    Quote Originally Posted by Constitutionally Speaking View Post
    The only reason speculators have as much impact as they do is because the difference between supply and demand is so slim that any disruption can potentially mean supply cannot meet demand. If we had enough supply there would be no ability nor would there be the incentive to bid up the price so dramatically. In fact there would be a disincentive because you would lose your shirt.
    You are correct it is a very high risk market but if you know what you are doing you may become very wealthy !

    ICE operates three regulated derivatives exchanges:

    This futures market is where George Soros made his billions and where his currency
    manipulations almost bankrupted several small Eastern European countries .


    https://www.theice.com/homepage.jhtml
    ICE Futures U.S., ICE Futures Europe and ICE Futures Canada.
    Futures and options contracts on agricultural and soft commodities, energy, equity indexes and currency products are available around the clock.

    Oil price profiteering to be curbed at ICE Futures Europe and Nymex
    http://www.telegraph.co.uk/money/mai...1/cnoil131.xml

    Two of the world's largest energy exchanges have forced traders to deposit significantly more money when investing to curb volatility in energy markets and drive out speculators.
    Ten days of turmoil:
    The exchanges and related clearing houses have found themselves at the centre of the growing storm over claims that speculators have been behind the recent rise in oil prices to record levels.

    The New York Mercantile Exchange (Nymex) and ICE Futures Europe in London, the former International Petroleum Exchange, have now tripled "margin calls" for some contracts.

    They hope the increased margin calls will reduce volatility and force out some of the more speculative players.

    Who is ICE :
    In May 2000, IntercontinentalExchange was established, with its founding shareholders representing some of the world’s largest energy traders. The company’s mission was to transform OTC trading by providing an open, accessible, multi-dealer, around-the-clock electronic energy exchange. The exchange offered the trading community better price transparency, more efficiency, greater liquidity and lower costs than manual trading.

    In June of 2001, ICE expanded its business into futures trading by acquiring the International Petroleum Exchange (IPE), now ICE Futures, which operated Europe’s leading open-outcry energy futures exchange. Since 2003, ICE has partnered with the Chicago Climate Exchange (CCX) to host its electronic marketplace. In April of 2005, the entire ICE portfolio of energy futures became fully electronic.

    In January of 2007, ICE acquired the New York Board of Trade (NYBOT) now knows as ICE Futures U.S. Today, ICE Futures U.S. electronic products trade electronically on the ICE platform alongside with its traditional open outcry markets.
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  4. #4  
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    Quote Originally Posted by Constitutionally Speaking View Post
    The only reason speculators have as much impact as they do is because the difference between supply and demand is so slim that any disruption can potentially mean supply cannot meet demand. If we had enough supply there would be no ability nor would there be the incentive to bid up the price so dramatically. In fact there would be a disincentive because you would lose your shirt.
    The Democratic idea of an investigation of speculators is to shift the blame from their own shortcoming; it's not working because the majority of Americans blame Congress. These DC critters just voted to stop Shell from extracting oil from shale in CO. The dog and pony show that Congress puts on will fool about as many people as their little hearings with the big oil exec.'s.
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  5. #5  
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    Quote Originally Posted by lacarnut View Post
    The Democratic idea of an investigation of speculators is to shift the blame from their own shortcoming; it's not working because the majority of Americans blame Congress. These DC critters just voted to stop Shell from extracting oil from shale in CO. The dog and pony show that Congress puts on will fool about as many people as their little hearings with the big oil exec.'s.

    Oh I agree.
    They have to do something or they will have the entire country up their asses.All they can think of is to poke and shove some capitalists and shout 'bad dog' to keep the West Coast Maoists quiet.
    And If after the show they think they can get away with it they will do absolutely nothing more !!
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