Comments on: CFTC Investigation of Oil Trading Focuses on Tankers, Storage http://www.nakedcapitalism.com/2008/05/cftc-investigation-of-oil-trading.html Sun, 22 Nov 2009 14:06:54 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Juan http://www.nakedcapitalism.com/2008/05/cftc-investigation-of-oil-trading.html#comment-8812 Juan Sun, 01 Jun 2008 00:54:00 +0000 http://www.nakedcapitalism.com/2008/05/cftc-investigation-of-oil-trading-focuses-on-tankers-storage/#comment-8812 Isn't a CFTC focus on manipulation a 'few bad apples' approach? Other hand, even this might suffice if the market has become sufficiently fragile. Isn’t a CFTC focus on manipulation a ‘few bad apples’ approach? Other hand, even this might suffice if the market has become sufficiently fragile.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/05/cftc-investigation-of-oil-trading.html#comment-8791 Anonymous Sat, 31 May 2008 13:06:00 +0000 http://www.nakedcapitalism.com/2008/05/cftc-investigation-of-oil-trading-focuses-on-tankers-storage/#comment-8791 and John Mauldin is selling the "tankers floating on the ocean loaded with oil" as a reason for tight supply....and Boone Pickens has moved out of oil....one wonders why...could it be that "peak oil" is a reality and not a myth...read the oildrum.com for an understanding of what peak oil means....it's not what most think and John Mauldin is selling the “tankers floating on the ocean loaded with oil” as a reason for tight supply….and Boone Pickens has moved out of oil….one wonders why…could it be that “peak oil” is a reality and not a myth…read the oildrum.com for an understanding of what peak oil means….it’s not what most think

]]> By: Richard Kline http://www.nakedcapitalism.com/2008/05/cftc-investigation-of-oil-trading.html#comment-8787 Richard Kline Sat, 31 May 2008 06:56:00 +0000 http://www.nakedcapitalism.com/2008/05/cftc-investigation-of-oil-trading-focuses-on-tankers-storage/#comment-8787 We are all Enron now. We are all Enron now.

]]> By: Frank Ruscica http://www.nakedcapitalism.com/2008/05/cftc-investigation-of-oil-trading.html#comment-8784 Frank Ruscica Sat, 31 May 2008 01:57:00 +0000 http://www.nakedcapitalism.com/2008/05/cftc-investigation-of-oil-trading-focuses-on-tankers-storage/#comment-8784 so i-banks are taking taxpayers' money via the Fed's lending facilities, and using that money to rig the oil markets at the expense of taxpayers? so i-banks are taking taxpayers’ money via the Fed’s lending facilities, and using that money to rig the oil markets at the expense of taxpayers?

]]> By: mxq http://www.nakedcapitalism.com/2008/05/cftc-investigation-of-oil-trading.html#comment-8783 mxq Fri, 30 May 2008 23:33:00 +0000 http://www.nakedcapitalism.com/2008/05/cftc-investigation-of-oil-trading-focuses-on-tankers-storage/#comment-8783 A trader's view regarding storage, via <a HREF="http://www.thestreet.com/b/dps/cc/columnistconversation2.html" REL="nofollow">Dan Dicker over at Thestreet.com ($)</a>:<br/><br/>"...in the world of energy trade, there is lack of fungibility that has always broken down thus: Electricity, non-storable -- Natural gas, more storable -- Crude oil, mostly storable <br/><br/>Although easiest of the three, oil storage has been historically inelastic, no matter the price... Over the last 4 years (and for most of my trading life) forward stocks have always hovered between 50 and 55 days -- storage is expensive and limited, and just not efficacious. <br/><br/>This is why, at least in my view, that supply arguments are often overblown in oil pricing theory -- supplies remain closely aligned to demand and rarely overrun -- as OPEC members have time and again explained but are ignored. This is why President Bush can walk in to a meeting with Saudi ministers and be patted on the head like a silly schoolboy -- "you don't understand, Mr. President -- we've got nowhere to SELL any more right now" and Bush will run home and talk about increasing domestic supply as if he hasn't heard a thing" A trader’s view regarding storage, via Dan Dicker over at Thestreet.com ($):

“…in the world of energy trade, there is lack of fungibility that has always broken down thus: Electricity, non-storable — Natural gas, more storable — Crude oil, mostly storable

Although easiest of the three, oil storage has been historically inelastic, no matter the price… Over the last 4 years (and for most of my trading life) forward stocks have always hovered between 50 and 55 days — storage is expensive and limited, and just not efficacious.

This is why, at least in my view, that supply arguments are often overblown in oil pricing theory — supplies remain closely aligned to demand and rarely overrun — as OPEC members have time and again explained but are ignored. This is why President Bush can walk in to a meeting with Saudi ministers and be patted on the head like a silly schoolboy — “you don’t understand, Mr. President — we’ve got nowhere to SELL any more right now” and Bush will run home and talk about increasing domestic supply as if he hasn’t heard a thing”

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