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#40021 - 09/24/08 11:59 AM Re: Oil price circus Part 2 [Re: pedestrian]
empicard Offline
Carpal Tunnel

Registered: 08/29/01
Posts: 2957
Loc: LI, NY
frozen concentrated orange juice

Time flies like an arrow. Fruit flies like a banana.

#40031 - 09/24/08 02:35 PM Re: Oil price circus Part 2 [Re: Smike]
mworking Offline
old hand

Registered: 05/26/04
Posts: 764
 Originally Posted By: Smike
I believe today puts to rest any question as to whether factors outside of supply and demand are in control of the oil market right now. (at least in control in the short term)


#40085 - 09/25/08 01:55 AM Re: Oil price circus Part 2 [Re: mworking]
acdnyc Offline

Registered: 11/10/04
Posts: 209
Loc: NYC/Kerhonkson
Double ??? to that.

Isn't there some dumb oil guy in the White House?
jugs or mugs

#40101 - 09/25/08 12:59 PM Re: Oil price circus Part 2 [Re: acdnyc]
Smike Offline
Carpal Tunnel

Registered: 05/01/01
Posts: 3143
Loc: in your backyard
Here is a better explanation: (Which is was basically a lot of investors with no business holding oil contracts that were going to be on hook when those contacts were being called.)

US Bodman: Monday Record Oil Price Move Likely A Short Squeeze

WASHINGTON -(Dow Jones)- Monday's record oil-price spike was most likely a short squeeze on financial traders who had misjudged trading positions that would be needed following hurricane strikes on the Gulf coast, U.S. Energy Secretary Samuel Bodman said Wednesday.
The biggest one-day jump in crude contracts in the front-month contract prompted an investigation by the Commodity Futures Trading Commission.
An emerging consensus of analysts and traders attribute the wild session, in which oil prices surged to $130 a barrel at one point, to investors trapped with short positions in the expiring contract. Those traders, who had bet oil prices would fall, were forced to enter equivalent long October positions, or deliver on the physical barrels of oil underlying the short contracts.
"The best that I know about it, it was a short squeeze," Bodman told reporters on the sidelines on an event, adding, "it was clearly not a fundamental (move)."
"I think it was unrelated to the hurricanes," the secretary said, adding it was "an issue that no doubt affected the judgment of the traders."
"This was a feature of the financial market ... as best I know these were professional traders in the marketplace, " Bodman said.
-By Ian Talley, Dow Jones Newswires; 202 862 9285;


CME Confirms Subpoenas Issued In Monday Oil Price Spike Inquiry
NEW YORK (Dow Jones)--

The Commodity Futures Trading Commission has issued subpoenas in its inquiry into Monday's unprecedented jump in crude-oil futures on the New York Mercantile Exchange, a spokesman for the exchange parent said Tuesday.

Allan Schoenberg, a spokesman for Nymex parent CME Group Inc. (CME), did not provide further information on the number or identity of the recipients. A CFTC spokeswoman declined to comment.

The CFTC on Monday said it was "closely monitoring" the large movement in oil prices Monday, when the expiring October contract surged more than $25 to $130 a barrel in frenzied trading, to determine whether illegal market manipulation took place.

Separately, U.S. Energy Secretary Samuel Bodman said Wednesday the record price spike was most likely a short squeeze on financial traders who had misjudged trading positions that would be needed following hurricane strikes on the Gulf Coast.

-By Gregory Meyer, Dow Jones Newswires; 201-938-4377;

#40120 - 09/25/08 05:04 PM Re: Oil price circus Part 2 [Re: Smike]
Mike Rawdon Offline

Carpal Tunnel

Registered: 11/29/99
Posts: 4276
Loc: Poughkeepsie
Last week (before this latest spike event) there was an article that I saw somewhere online that said some thinkgroup had concluded that speculation and trading had definitely been a more significant driver of recent oil price increases than supply-and-demand. I wish I'd kept/remembered where I saw it. So this latest news didn't come as news to me.

#40125 - 09/25/08 06:46 PM Re: Oil price circus Part 2 [Re: Mike Rawdon]
pedestrian Offline

Registered: 08/05/02
Posts: 2244
Loc: a heavily fortified bunker!
Hmm... makes sense. Probably a lot of oil producers are holding short positions in the futures market to hedge their inventories of physical oil against price decreases. Hedge too far and you get squeezed...

#40127 - 09/25/08 07:14 PM Re: Oil price circus Part 2 [Re: pedestrian]
mworking Offline
old hand

Registered: 05/26/04
Posts: 764

It ought to be very clear by now that our financial system is intentionally opaque allowing many people to profit heavily in questionable ways, and that this is causing trouble in more than one area!

When the system work like this it's not trickle down, it's trickle up - no pumped up.

#42624 - 01/17/09 12:38 PM Drill for the inner city poor (?) [Re: mworking]
oenophore Online   confused
Carpal Tunnel

Registered: 09/24/01
Posts: 5981
Loc: 212 land
Who would have guessed that environmental conservation can be racist?

Protesters label Redford an enemy of the poor

By Patty Henetz

The Salt Lake Tribune

Updated: 01/16/2009 12:55:51 PM MST

Hollywood's Sundance Kid is hurting poor people.

So say some East Coast ministers and conservative activists, who took to the streets in front of a downtown Salt Lake City theater on the eve of Robert Redford's Sundance Film Festival to accuse the actor of holding down low-income Americans with his opposition to oil and gas drilling near national parks in Utah.

The protesters, led by the Congress of Racial Equality's national spokesman Niger Innis, suggested Redford should "relinquish his wealth" and live like a poor person. They complained that the filmmaker's anti-drilling stance could lead to higher energy prices for inner-city residents, forcing them to accept a lower standard of living.

The clergymen prayed for Redford "to see the light" and linked his environmental activism with racism.

"The high energy prices we're going to see this winter are essentially discriminatory," said Bishop Harry Jackson Jr. of the Hope Christian Church in Beltsville, Md., chairman of the High-Impact Leadership Coalition, a petroleum industry advocate.

A month ago, Redford, a trustee of the National Resources Defense Council, voiced support for a federal lawsuit aimed at blocking the Bush administration's "morally criminal" attempt to auction 103,000 acres of scenic redrock desert for oil and gas drilling near Arches and Canyonlands national parks and Dinosaur National Monument.

On Wednesday, Redford said through a spokeswoman that he stands by his opposition to the leasing. "These contested oil leases in Utah really have nothing to do with the cost of home heating," said Los Angeles-based spokeswoman Joyce Deep. "The fact is, the oil and gas industry already has more leases than it knows what to do with."

Using federal studies and statistics, The Wilderness Society calculated the natural gas recoverable from the 77 contested parcels would be the equivalent of two days of national consumption. The oil recoverable from those parcels would last 1 hour and 40 minutes at today's consumption rate.

Glenn Bailey, executive director of the poverty-advocacy group Crossroads Urban Center in Salt Lake City, called CORE's message a "red herring." The root cause of high energy prices, he said, are "big industry and price manipulation, not conservationists."

But Bishop Bobby Allen, of Ogden's Griffin Memorial Church of God in Christ, said even a tiny amount of Utah gas represents a lifeline to poor inner-city residents. "One life worth saving is worth the effort," he said.

On Wednesday, Innis asserted that a billion cubic feet of Utah natural gas flows to the East every day. That's possible, given that Utah, Wyoming and Colorado together daily ship 4.3 billion cubic feet eastward, according to Mark Doelger of the Wyoming Pipeline Authority.

But to put that in perspective, the 1 million people in the greater Chicago region consumes more than 4 billion cubic feet per day.

According to the Utah Division of Oil, Gas and Mining, the entire amount of gas drilled in Utah between 1891 and 2000 has been 7.65 trillion cubic feet. Between 2000 and September 2007, drilling in Utah yielded 2.3 trillion cubic feet -- all told, about six month's worth at today's consumption level.

#42669 - 01/19/09 04:28 PM Re: Drill for the inner city poor (?) [Re: oenophore]
pda Offline

Registered: 08/30/01
Posts: 623
Loc: Bergen County NJ
It's not racist. Innis is a conservative, and this is a conservative issue, not a racial one. He's just using the CORE platform to attract attention.

In case you didn't catch it, here is the latest on the student that screwed up the latest lease auction:

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