Tag oil prices

Drop in oil prices possibly due to speculation

SemGroup just filled bankruptcy after a $3.2bn trading loss in commodities. Interestingly, they were short oil, meaning they expected prices to drop. But a wildly flucuating oil market combined with other traders smelling SemGroup blood in the water forced them…

Thoughts on oil speculation

If speculation was mostly responsible for the rise in oil prices, then massive intervention by a central bank shorting oil should be enough to drive prices down. But this hasn’t happened. So, either they don’t want to intervene (doubtful) or…

Nationalize the oil companies?

Climate and Capitalism says “Nationalize big oil, enemy of people and planet” but that won’t necessarily solve the problem. The biggest oil entities on the planet already are nationalized. Companies like Exxon-Mobil, are smallish in comparison. Ranked on the basis…

Loony Bird Lieberman and commodity speculation

Meanwhile, the other senator from Connecticut, Loony Bird Lieberman wants to ban institutional investors from commodity speculation, a proposal which demonstrates his almost total ignorance of how markets work. While speculation is certainly part of it, increasing demand and flat-to-declining…

Has oil peaked, at least temporarily?

A cover story by The Economist about high oil prices would, assuming you believe in contrary indicators, indicate at least a short-term top in prices. That’s what The Big Picture thinks, saying “Painful though it is, this oil shock will…