Am I getting this Oil thing right?

[jficquette]

They came out today at close to the end of the NYMEX session and changed the margin requirements on oil which caused the sell off.

They are also going to change the number of oil contracts “non industry participants” can own at one time. I am not sure when this change is going into effect but it will be soon. It may have happened today along with the margin change.

John

[renterclint]

It seems like NYMEX has been playing with the margin requirements a lot lately. This would squeeze out the little guys because they have to throw in more cash to increase their equity position, but would this really discourage major hedge funds and the like who may not be so deeply leveraged?

Do you happen to have a link to info about the proposed non-industry limits?

Thanks.

[renterclint]

It seems like NYMEX has been playing with the margin requirements a lot lately. This would squeeze out the little guys because they have to throw in more cash to increase their equity position, but would this really discourage major hedge funds and the like who may not be so deeply leveraged?

Do you happen to have a link to info about the proposed non-industry limits?

Thanks.

[renterclint]

It seems like NYMEX has been playing with the margin requirements a lot lately. This would squeeze out the little guys because they have to throw in more cash to increase their equity position, but would this really discourage major hedge funds and the like who may not be so deeply leveraged?

Do you happen to have a link to info about the proposed non-industry limits?

Thanks.

[renterclint]

It seems like NYMEX has been playing with the margin requirements a lot lately. This would squeeze out the little guys because they have to throw in more cash to increase their equity position, but would this really discourage major hedge funds and the like who may not be so deeply leveraged?

Do you happen to have a link to info about the proposed non-industry limits?

Thanks.

[renterclint]

It seems like NYMEX has been playing with the margin requirements a lot lately. This would squeeze out the little guys because they have to throw in more cash to increase their equity position, but would this really discourage major hedge funds and the like who may not be so deeply leveraged?

Do you happen to have a link to info about the proposed non-industry limits?

Thanks.

[jficquette]

Renterclint,

No, but I will try and find out more information today and link it.

John

[jficquette]

Renterclint,

No, but I will try and find out more information today and link it.

John

[jficquette]

Renterclint,

No, but I will try and find out more information today and link it.

John

[jficquette]

Renterclint,

No, but I will try and find out more information today and link it.

John

[jficquette]

Renterclint,

No, but I will try and find out more information today and link it.

John

[EconProf]

For every speculator who profited from the runup in oil prices, there was a seller. IOW, one speculator gained, another lost the same dollar amount.
That is why the politicians’ rant against “speculation” is simply a feint to divert our attention from the supply and demand fundamentals that have driven the price up. Those same politicians could favorably impact supply and demand via drilling, encouraging conservation, and other politically painful measures if they had the integrity to do so.

[EconProf]

For every speculator who profited from the runup in oil prices, there was a seller. IOW, one speculator gained, another lost the same dollar amount.
That is why the politicians’ rant against “speculation” is simply a feint to divert our attention from the supply and demand fundamentals that have driven the price up. Those same politicians could favorably impact supply and demand via drilling, encouraging conservation, and other politically painful measures if they had the integrity to do so.

[EconProf]

For every speculator who profited from the runup in oil prices, there was a seller. IOW, one speculator gained, another lost the same dollar amount.
That is why the politicians’ rant against “speculation” is simply a feint to divert our attention from the supply and demand fundamentals that have driven the price up. Those same politicians could favorably impact supply and demand via drilling, encouraging conservation, and other politically painful measures if they had the integrity to do so.

[EconProf]

For every speculator who profited from the runup in oil prices, there was a seller. IOW, one speculator gained, another lost the same dollar amount.
That is why the politicians’ rant against “speculation” is simply a feint to divert our attention from the supply and demand fundamentals that have driven the price up. Those same politicians could favorably impact supply and demand via drilling, encouraging conservation, and other politically painful measures if they had the integrity to do so.

[Author]

Posts