Speculators. What do we means by these words. It sound like they are the one who always mess up the whole thing but sometimes they also can bring cheer to the market.
One thing for sure when I start to become a blogger, I was inform by some of the article saying that the recently increase in Crude Oil prices are solely because of Supply and Demand. Do you all agreed ?
I can say that I'm totally disagree with the current Crude Oil prices increase or decrease got nothing to do with the Speculators.
In the terms of Supply and Demand, no doubt it play a major indicator as to the price of increase and decrease but one thing for sure Speculators are the main culprits among all these hoo-haa in Crude Oil prices.
We have to remember that once there is a market to trade, there always be a speculators and also a Supply and Demand will be involve. How can a Crude Oil prices increase so much when the demand for it are not increasing as many as the world needed. Remember when Saudi Arabia pump in more barrels to control the prices but the prices still keep on climbing ?
Do you know that some of the article posted by some of the blogger during the Crude Oil prices increase dismissed the notion that speculators were manipulating the oil market.
We have to remember that once there is a market to trade, there always be a speculators and also a Supply and Demand will be involve. How can a Crude Oil prices increase so much when the demand for it are not increasing as many as the world needed. Remember when Saudi Arabia pump in more barrels to control the prices but the prices still keep on climbing ?
Do you know that some of the article posted by some of the blogger during the Crude Oil prices increase dismissed the notion that speculators were manipulating the oil market.
Some of their article is quite nice but some of them perhaps cannot accept that in this world of finance, when there is a money involve, there always be a speculators around. No matter an old speculators or a new born speculators.
Please read this article. Cantwell blames spikes in oil prices on speculators.
The U.S. senator from Washington and Portland economist Robert McCullough analyze recent market volatility.
The last time U.S. Sen. Maria Cantwell and Portland economist Robert McCullough teamed up, they helped reveal the predations of rogue electricity traders at Enron.
Now, they're taking on an even larger and more politically connected target: the oil industry.
Cantwell, D-Wash., has for months been loudly accusing speculators of driving up oil prices. On Wednesday, she presented an analysis of the oil market's recent gyrations penned by McCullough. "Every member of Congress should read this report," Cantwell said at a news conference.
McCullough found that market fundamentals fail to explain the wild price spikes and declines of recent weeks. Oil futures prices soared nearly 10 percent in June, closing at a record $142.18 a barrel on July 3. Prices then reversed, declining 17 percent by the end of July.
That kind of volatility on the short-term spot market would be unusual enough. But these were futures contract prices for delivery in 2016. Traders of oil and other commodities typically buy and sell futures contracts, which are promises to buy specific quantities at a specified time.
The U.S. senator from Washington and Portland economist Robert McCullough analyze recent market volatility.
The last time U.S. Sen. Maria Cantwell and Portland economist Robert McCullough teamed up, they helped reveal the predations of rogue electricity traders at Enron.
Now, they're taking on an even larger and more politically connected target: the oil industry.
Cantwell, D-Wash., has for months been loudly accusing speculators of driving up oil prices. On Wednesday, she presented an analysis of the oil market's recent gyrations penned by McCullough. "Every member of Congress should read this report," Cantwell said at a news conference.
McCullough found that market fundamentals fail to explain the wild price spikes and declines of recent weeks. Oil futures prices soared nearly 10 percent in June, closing at a record $142.18 a barrel on July 3. Prices then reversed, declining 17 percent by the end of July.
That kind of volatility on the short-term spot market would be unusual enough. But these were futures contract prices for delivery in 2016. Traders of oil and other commodities typically buy and sell futures contracts, which are promises to buy specific quantities at a specified time.
"There is no evidence that a significant long-term change in oil consumption or production took place in June and then faded away in July," McCullough said.
"All available evidence indicates that the price spike of July 3 was a form of market failure -- most likely due to the significant concentration in the energy sector in recent years."
McCullough didn't go as far as Cantwell in blaming speculators for the price increases, saying he lacked the data to make such a leap. But that's part of the problem, he added: There's little useful information on oil trading.
Cantwell agreed, calling for greater transparency from the industry and its regulators, particularly the Commodities Futures Trading Commission, or CFTC, which regulators futures trading.
Oil prices have doubled in two years, people and businesses are going bankrupt and the CFTC is sticking its head in the sand," Cantwell said. Last month, a CFTC-led task force dismissed the notion that speculators were manipulating the oil market.
Cantwell and McCullough fought for years to convince federal electricity regulators that abusive trading by Enron staffers helped create and worsen the electricity shortage that hit the Western United States in 2000 and 2001.
Since then, the commission has insisted on more disclosure by market participants and has gotten tougher on enforcement.
When this article was posted, the Crude Oil prices in NYMEX drop USD -2.04 per barrel.
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