U.S. CitiesCity-Data Forum Index
Covid-19 Information Page
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 09-14-2009, 05:43 AM
 
12,869 posts, read 13,727,835 times
Reputation: 4453

Advertisements

Oil contango boosts crude storage at sea-sources | Reuters
Rate this post positively Reply With Quote Quick reply to this message

 
Old 09-14-2009, 05:52 AM
 
12,869 posts, read 13,727,835 times
Reputation: 4453
here is an easy read for how oil prices are manipulated by the market (think goldman sachs again):

The ABCs of Oil Manipulation -- Seeking Alpha


The key point to understand is that for a deliverable futures contract like NYMEX’s WTI, the futures price converges on the physical price, and not the other way around. What matters in terms of manipulation is the exercise of control over physical oil in tank or in transit, in order to be in position for delivery in accordance with exchange rules.

... by 2000 manipulation of settlement prices – for the purpose of making trading profits “off exchange” – was rife on the IPE to the extent that the opportunity for profit to which it gave rise was affectionately known by IPE locals as “Grab a Grand”. When I discovered it by chance, and blew the whistle on it, my allegations were buried by the UK’s Treasury, FSA and IPE between them, and so was I, personally and professionally.

Meanwhile, in 1999, Goldman Sachs managed to convince the US regulators, the CFTC, that they were entitled to the same regulatory “hedge” exemptions as those market participants who were genuinely hedging their physical requirements. This, combined with the collapse of Enron in December 2001, cleared the way for the complete takeover of the global energy marketplace which has followed in trading on (and off) the ICE platform, and prepared the ground for making money out of the growing constituency of financial investors.


Through the 1990s two new breeds of financial investors in the energy markets began to evolve.

Firstly, the inaptly named hedge funds, which recruited, or were set up by, some of the top energy traders, who preferred to make money for themselves rather than their employer oil firms or investment banks.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 09-14-2009, 04:41 PM
 
12,869 posts, read 13,727,835 times
Reputation: 4453
another side thought:

if tankers at one point rented for up to 250,000 dollars a day, why would rental rates be approximately 50 -60,000 a day now if the world economy is actually on the rebound? of course, the bigger question is why did taxpayers have to subsidize a company's decision to lease tankers and sit on oil at lower prices in an effort to drive prices up when the oil is actually delivered?
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics
Similar Threads

All times are GMT -6. The time now is 07:39 AM.

© 2005-2021, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top