Zipp0 1 #1 January 4, 2008 He wanted to be famous, so he offered $100,000 for 1000 barrels http://news.yahoo.com/s/afp/20080104/ts_alt_afp/commoditiesoilpriceoffbeat What kind of a fucked up market is it where one dickface can cause hundreds of millions of people to pay so much more for a gallon of gas? They need to raise the margins on oil futures trades to a point where this shit cannot happen. The oil analysts agree with me now that supply no longer drives price - speculation does. Google it. -------------------------- Chuck Norris doesn't do push-ups, he pushes the Earth down. Quote Share this post Link to post Share on other sites
billvon 2,400 #2 January 4, 2008 >What kind of a fucked up market is it where one dickface can cause >hundreds of millions of people to pay so much more for a gallon of gas? It's called speculation. It's how a great many people make money in the stock market. When you buy a lot of something, the price goes up. If you are the first to start a wave of buying, you can make a LOT of money. (Note that when such actions result in _your_ 401k investments making more money, you support it.) >The oil analysts agree with me now that supply no longer drives >price - speculation does. Both, of course, play a role. Speculation would not proceed at the rate it is proceeding if oil were plentiful. Quote Share this post Link to post Share on other sites
SpeedRacer 1 #3 January 4, 2008 QuoteThe oil analysts agree with me now that supply no longer drives price - speculation does. That's been true for many many years for most commodities. The guy who bought at $100 didn't actually do that much. The price was getting to $100 anyway, this guy who bought 1000 barrels does not mean much in the big picture. The price dropped back down afterwards due to profit-taking by other speculators. Speed Racer -------------------------------------------------- Quote Share this post Link to post Share on other sites
Amazon 7 #4 January 4, 2008 Aww man.. and here I thought it was another Incompetent in Chief thread.... Since he and Cheney are both in the oil business you would THINK that maybe they might have known the outcome of their actions in destabilizing the world oil markets with the Excellent Middle East Adventure. Hell I am not even in the market..but I have watched it over and over again... if someone farts the wrong way in the middle east.. the price of oil goes up and has since the Oil Embargo in the early 70's Quote Share this post Link to post Share on other sites
lawrocket 3 #5 January 4, 2008 Knowing little about the oil markets, how does the light sweet crude market affect the prices of sour crude? Sour crude is the main oil produced in the Middle East and Venezuela, but the news from the NY Mercantile usually is light sweet. My wife is hotter than your wife. Quote Share this post Link to post Share on other sites
Zipp0 1 #6 January 4, 2008 QuoteKnowing little about the oil markets, how does the light sweet crude market affect the prices of sour crude? Sour crude is the main oil produced in the Middle East and Venezuela, but the news from the NY Mercantile usually is light sweet. Hell if I know! I just started learning about futures and how leverage works, and how you can control 70,000 barrels of oil with $3200, which to me, is fucking nuts. But if you can control 70,000 barrels with $3200, that means that $100,000 controls 2,170,000 barrels of oil. And that many barrels CAN affect the price. Higher margins would mean less leverage, and more stable prices. (if I get theis whole futures thing, which I think I do) -------------------------- Chuck Norris doesn't do push-ups, he pushes the Earth down. Quote Share this post Link to post Share on other sites
SpeedRacer 1 #7 January 4, 2008 except the article says he only bought 1000 barrels worth total. So with no margin he would have paid $100,000. I don't know what the margin is for oil, but if it is 20% he only actually put down $20,000. Speed Racer -------------------------------------------------- Quote Share this post Link to post Share on other sites
Zipp0 1 #8 January 4, 2008 Quoteexcept the article says he only bought 1000 barrels worth total. So with no margin he would have paid $100,000. I don't know what the margin is for oil, but if it is 20% he only actually put down $20,000. I think it's more like 5%, but I'm not positive on that. -------------------------- Chuck Norris doesn't do push-ups, he pushes the Earth down. Quote Share this post Link to post Share on other sites
Casurf1978 0 #9 January 4, 2008 Margins all across the board have gone up and I don't see any price stabilization. Speculators have always driven the markets, stock and future markets. Oil is also going up because of the weak dollar too. Quote Share this post Link to post Share on other sites
nathaniel 0 #10 January 4, 2008 All the markets work that way. The prices you typically see quoted everywhere are the end of day figures. People who need to work with stock prices know not to rely on the end-of-day figures for all their needs. What strikes me as odd is the markets' need to operate on a diurnal cycle at all. It causes all kinds of oddities in trading like excesses of market-on-open and market-on-close orders etc that are plainly difficult to handle -- in order to achieve the capacity to process all the data at once and without delay, the market operators end up having to supply equipment that sits idle for most of the day.My advice is to do what your parents did; get a job, sir. The bums will always lose. Do you hear me, Lebowski? Quote Share this post Link to post Share on other sites
skinnyflyer 0 #11 January 5, 2008 QuoteSour crude is the main oil produced in the Middle East Actually I think the main oil produced in the Middle East is Light Sweet crude."Death is more universal than life; everyone dies but not everyone lives." A. Sachs Quote Share this post Link to post Share on other sites
Andrewwhyte 1 #12 January 5, 2008 QuoteKnowing little about the oil markets, how does the light sweet crude market affect the prices of sour crude? Sour crude is the main oil produced in the Middle East and Venezuela, but the news from the NY Mercantile usually is light sweet. The different grades have known cost differentials for converting to refined products. Generally the higher the price for the raw product, the closer the different grades will be proportionally because refining costs do not move in tandem with the raw price. Alberta tar sands bitumen -probably the lowest quality oil product on the market- generally trades at about 40-60% the price of LSC. Quote Share this post Link to post Share on other sites
shropshire 0 #13 January 6, 2008 Actually, the oil is still worth the same amount... it's the Dollar, that's fucked..... It's about time that oil trransactions were performed in Euros (.)Y(.) Chivalry is not dead; it only sleeps for want of work to do. - Jerome K Jerome Quote Share this post Link to post Share on other sites
