MasseyBrown From United States of America, joined Dec 2002, 5863 posts, RR: 7 Posted (7 years 1 month 2 weeks 6 days 2 hours ago) and read 1610 times:
Buried (even in the WSJ it was on page C7) are some reports today that Washington and London are discussing limiting speculation in front month oil contracts. The report alone should chase some speculators out of the market.
Limiting this intervention to the front month could presumably make those prices move less erratically for actual users of the commodity while leaving more distant months' contracts for the market speculators to price as they will.
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EXAAUADL From , joined Dec 1969, posts, RR:
Reply 1, posted (7 years 1 month 2 weeks 6 days 2 hours ago) and read 1605 times:
Quoting MasseyBrown (Thread starter): Buried (even in the WSJ it was on page C7) are some reports today that Washington and London are discussing limiting speculation in front month oil contracts. The report alone should chase some speculators out of the market.
I do think speculators should be limited, mostly by raising margins. That might cause some money to go to Dubai, but the way to go after that would be to raise the taxes of investors, in this case US investors, who dabdle in commodities markets.......speculators are part of the problem but ask yourself why werent there speculators like this 10 years ago.
1. CFTB allows more speculators in
2. spare excess capacity is lower today
3. US interest rates too low.
LAXintl From United States of America, joined May 2000, 27311 posts, RR: 50
Reply 2, posted (7 years 1 month 2 weeks 6 days 2 hours ago) and read 1587 times:
Dumb idea, and needless government intervention in the market.
Anyhow it ridiculous to want to strangle market efficiency in reacting to good or bad events which would effect commodity pricing.
If front month pricing is more restrictive, I can very easily see sellers holding back capacity during times such as now where future month pricing might drive a larger premium. Basically why commit to selling for X in July, when you can get X+ in August as the market has been dumbed down in its ability to react to day to day events for the front month in pricing.
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