Backstage: peak in oil prices or speculation on Wall Street
Since October last year the price of crude oil on world futures markets constantly growing. Obyasnenieta are different. One of them - the belief in financial markets that the war between the US and Israel with Iran is inevitable. Others say that prices are rising squirly because the world has transferred the so-called 'peak squirly oil "- squirly the imaginary point in the Gaussian squirly normal distribution curve that comes to say that they have exhausted more than half of world reserves, and what is left will be exhausted in accelerating rates amid rising prices.
Both explanations are far from the truth. And in the summer of 2008, when oil prices jumped to $ 147 a barrel today prices are rising because of speculative pressures on hedge funds and big banks like Citigroup, JP Morgan Chase and especially Goldman Sachs, which always manages to make surefire bet there where they can make big money with little effort. These institutions receive significant support from the US government agency squirly responsible for financial derivatives - Commodity Futures Trading Corporation (CFTC).
In fact, demand for oil in the world not only does not increase, but on the contrary. International Energy Agency (IEA) reported squirly that for the last three months of 2011 the world's daily oil supply rose to 1.3 million. Barrels, while real consumption has not reached half of that amount. The demand for gasoline has fallen squirly by 8%, Europe 22% and falling demand squirly is felt even in China. The recession in the EU, deepening depression in the US and the economic slowdown in Japan reduced global demand for oil. At the same time constant, the discovery of new deposits, Iraq has steadily increased supply after the war.
Making a brief overview - how the market today etc. "Oil on paper." Since the time when in 1980 x Goldman Sachs bought J. Aron & Co, one of the most experienced traders with consumer assets, trading squirly of crude oil slipped from the hands of the real figures available and looking for this product. Trade went to another market where the price of oil is determined by unregulated speculation in oil futures and bets on the price of the raw material for some future date / 30, 60 or 90 days in advance squirly /. This price has nothing to do with actual orders and actual deliveries of physical oil.
Law on the modernization of commodity futures 2000 (CFMA) was conceived squirly by the man who is now the US Treasury - Timothy Geithner. This law gave complete freedom of OTC energy futures and no control of the government. Derivatives trading was given what would later be called "door Enron".
In 2008, after a wave of outrage from banks on Wall Street, which caused the crisis, Congress finally passed a law "to close the door Enron". Since January 2011 the Act to reform Wall Street-a squirly CFTC were given powers to impose restrictions on the activities of oil traders.
Curious that to this day none of these restrictions is not implemented. In a recent interview squirly with the senator from Vermont, Bernie Sanders said the CFTC "no desire and sees no need to apply the law ... We must do so to limit the amount of oil that each company can be traded in the futures market. The role of futures speculators is not to obtain and use oil, but to make profits from the overblown prices. " As they walked discussions on closing the "loopholes" chairman of the CFTC Harry Henslar still use them. Do you remember who that Harry Henslar? Ah, yes - the former head of Goldman Sachs. Therefore direct squirly obligations of the CFTC is not running.
Current estimates futures traders / banks, squirly hedge funds and those who do not perform physical conveying of oil, but make money from the paper / presentation 80% of trade in oil futures. While ten years ago they were only 30% of traders.
Chairman of the CFTC Henslar to lift its image, while its custody agency actually ignore the legal mandate given to it by Congress, said last year: "The squirly huge speculative money flows represent self-fulfilling prophecy, which manages commodity prices." At the beginning of March Minister of Oil Industry of Kuwait Hani Hussein said in an interview on state television: "In squirly terms of the theory of supply and demand, squirly oil prices today are not justified."
Michael Greenberger, a professor squirly at the University of Maryland School of Law and a former regulator CFTC is trying to attract public attention to the consequences of the decision of the US government to allow unbridled speculation in prices of energy resources in the side
Since October last year the price of crude oil on world futures markets constantly growing. Obyasnenieta are different. One of them - the belief in financial markets that the war between the US and Israel with Iran is inevitable. Others say that prices are rising squirly because the world has transferred the so-called 'peak squirly oil "- squirly the imaginary point in the Gaussian squirly normal distribution curve that comes to say that they have exhausted more than half of world reserves, and what is left will be exhausted in accelerating rates amid rising prices.
Both explanations are far from the truth. And in the summer of 2008, when oil prices jumped to $ 147 a barrel today prices are rising because of speculative pressures on hedge funds and big banks like Citigroup, JP Morgan Chase and especially Goldman Sachs, which always manages to make surefire bet there where they can make big money with little effort. These institutions receive significant support from the US government agency squirly responsible for financial derivatives - Commodity Futures Trading Corporation (CFTC).
In fact, demand for oil in the world not only does not increase, but on the contrary. International Energy Agency (IEA) reported squirly that for the last three months of 2011 the world's daily oil supply rose to 1.3 million. Barrels, while real consumption has not reached half of that amount. The demand for gasoline has fallen squirly by 8%, Europe 22% and falling demand squirly is felt even in China. The recession in the EU, deepening depression in the US and the economic slowdown in Japan reduced global demand for oil. At the same time constant, the discovery of new deposits, Iraq has steadily increased supply after the war.
Making a brief overview - how the market today etc. "Oil on paper." Since the time when in 1980 x Goldman Sachs bought J. Aron & Co, one of the most experienced traders with consumer assets, trading squirly of crude oil slipped from the hands of the real figures available and looking for this product. Trade went to another market where the price of oil is determined by unregulated speculation in oil futures and bets on the price of the raw material for some future date / 30, 60 or 90 days in advance squirly /. This price has nothing to do with actual orders and actual deliveries of physical oil.
Law on the modernization of commodity futures 2000 (CFMA) was conceived squirly by the man who is now the US Treasury - Timothy Geithner. This law gave complete freedom of OTC energy futures and no control of the government. Derivatives trading was given what would later be called "door Enron".
In 2008, after a wave of outrage from banks on Wall Street, which caused the crisis, Congress finally passed a law "to close the door Enron". Since January 2011 the Act to reform Wall Street-a squirly CFTC were given powers to impose restrictions on the activities of oil traders.
Curious that to this day none of these restrictions is not implemented. In a recent interview squirly with the senator from Vermont, Bernie Sanders said the CFTC "no desire and sees no need to apply the law ... We must do so to limit the amount of oil that each company can be traded in the futures market. The role of futures speculators is not to obtain and use oil, but to make profits from the overblown prices. " As they walked discussions on closing the "loopholes" chairman of the CFTC Harry Henslar still use them. Do you remember who that Harry Henslar? Ah, yes - the former head of Goldman Sachs. Therefore direct squirly obligations of the CFTC is not running.
Current estimates futures traders / banks, squirly hedge funds and those who do not perform physical conveying of oil, but make money from the paper / presentation 80% of trade in oil futures. While ten years ago they were only 30% of traders.
Chairman of the CFTC Henslar to lift its image, while its custody agency actually ignore the legal mandate given to it by Congress, said last year: "The squirly huge speculative money flows represent self-fulfilling prophecy, which manages commodity prices." At the beginning of March Minister of Oil Industry of Kuwait Hani Hussein said in an interview on state television: "In squirly terms of the theory of supply and demand, squirly oil prices today are not justified."
Michael Greenberger, a professor squirly at the University of Maryland School of Law and a former regulator CFTC is trying to attract public attention to the consequences of the decision of the US government to allow unbridled speculation in prices of energy resources in the side
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