The hammer comes down on Speculators

[Koz1]

Originally Posted By: grampi
Originally Posted By: ZZman
http://www.reuters.com/article/2011/04/1...E73A7ZL20110411

Goldman Sachs says Speculators have driven up prices in their estimate $ 27.00 a barrel.

Is Goldman Sachs wrong and a hack too?


They've driven it up a hellova lot more than that. From $30 to where it is today? I ain't buying they've only driven it up $27. What happened to these two guys needs to happen to ALL speculators! They're all a bunch of crooks getting rich on the backs of consumers...


This is the truth.

 

[demarpaint]

I've been saying all along that speculators are a big part of driving the oil prices higher, in fact a few of us have. We had to put flame suits on though. I'm sure a few of the less privileged insiders got burnt real good when they opened up the oil reserves. The real top of the food chain insiders knew ahead of time and were able to make a safe exit, too bad.

 

[Tornado Red]

Originally Posted By: demarpaint
I've been saying all along that speculators are a big part of driving the oil prices higher, in fact a few of us have. We had to put flame suits on though. I'm sure a few of the less privileged insiders got burnt real good when they opened up the oil reserves. The real top of the food chain insiders knew ahead of time and were able to make a safe exit, too bad.


The closing price for August WTI crude on Friday was $94.75 -- almost exactly the same price as the day before the announcement of the release of crude from emergency stocks. The same with Brent crude. RBOB gasoline is about 4 cents/gallon more than that Wednesday, while heating oil futures are about 2-4 cents cheaper.

There were rumors that some people got a heads-up on the IEA announcement, but prices didn't really move until the announcement.

 

[Steve S]

I am holding my breath!!! Follow the money. Dream on guys.

 

[demarpaint]

Originally Posted By: Tornado Red
Originally Posted By: demarpaint
I've been saying all along that speculators are a big part of driving the oil prices higher, in fact a few of us have. We had to put flame suits on though. I'm sure a few of the less privileged insiders got burnt real good when they opened up the oil reserves. The real top of the food chain insiders knew ahead of time and were able to make a safe exit, too bad.


The closing price for August WTI crude on Friday was $94.75 -- almost exactly the same price as the day before the announcement of the release of crude from emergency stocks. The same with Brent crude. RBOB gasoline is about 4 cents/gallon more than that Wednesday, while heating oil futures are about 2-4 cents cheaper.

There were rumors that some people got a heads-up on the IEA announcement, but prices didn't really move until the announcement.



I'll take your word for it. So far gas has dropped about 15 cents a gallon here, and that's good news. Hopefully some of the weaker positions got shaken out, and they play elsewhere. The the big dogs will always win.

 

[sentra]

Originally Posted By: grampi
Originally Posted By: ZZman
http://www.reuters.com/article/2011/04/1...E73A7ZL20110411

Goldman Sachs says Speculators have driven up prices in their estimate $ 27.00 a barrel.

Is Goldman Sachs wrong and a hack too?


They've driven it up a hellova lot more than that. From $30 to where it is today? I ain't buying they've only driven it up $27. What happened to these two guys needs to happen to ALL speculators! They're all a bunch of crooks getting rich on the backs of consumers...


Goldman Sachs also happens to be the most active institution involved in the trading of oil futures.

 

[Tornado Red]

Originally Posted By: sentra

Goldman Sachs also happens to be the most active institution involved in the trading of oil futures.


Part of the reason why someone getting into oil futures trading might choose Goldman Sachs as their broker is, what happens with the cash in escrow when the trader decides not to take a position? GS may have cash-equivalent funds that pay a higher interest rate than just the overnight money-market rate. If someone has a lot of money, then even 1/4 or 1/2 of a percentage point can make a difference.

I suspect most of the trades initiated by Goldman Sachs are for customers, not for the firm's own account.