Comments on: NYMEX oil benchmark again in question http://blogs.reuters.com/great-debate/2008/12/23/nymex-oil-benchmark-again-in-question/ Thu, 21 Jul 2016 07:57:19 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Robert Pratt http://blogs.reuters.com/great-debate/2008/12/23/nymex-oil-benchmark-again-in-question/#comment-4177 Sun, 28 Dec 2008 21:39:14 +0000 http://blogs.reuters.com/great-debate/?p=1037#comment-4177 Major oil companies are masters at gaming the price of oil.

I wonder why you rely on NYMEX numbers.

It’s funny how after the price of oil dropped, several major oil refineries suddenly needed routine maintenance…..there was no issue of maintenance when oil was $140 per barrel.

Please, try to convince me there is no collusion. I’ll bet you $140 that you can’t.

The truth is Mr. Kemp, a relatively small number of traders (maybe 6-10 people) control the price of oil for the entire world. There is no ‘natural’ price of oil, as with other commodities. It is set by those few people.

Stop talking boards. You should know better when it comes to oil.

Your article gives too much attention to public oil trading, and too little to who controls it.

Does anyone want to buy shares in Madoff Securities? 10% return per year. Guaranteed.

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By: TR http://blogs.reuters.com/great-debate/2008/12/23/nymex-oil-benchmark-again-in-question/#comment-4079 Sat, 27 Dec 2008 17:32:36 +0000 http://blogs.reuters.com/great-debate/?p=1037#comment-4079 Craig, decline rates of oil fields are about 6% per year for average sized fields according to recently published data. That would be a massive loss of oil resources per decade. And that is a recipe for more expensive oil so I am not sure why it would worth less, other than some people want it to be worth less, because the markets have ordered more of it than they had needed to extracted. Shorting the future market or manipulating the markets seem to be designed to help some people to make profit seems to be the reason behind this.

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By: NDF http://blogs.reuters.com/great-debate/2008/12/23/nymex-oil-benchmark-again-in-question/#comment-4069 Sat, 27 Dec 2008 16:20:52 +0000 http://blogs.reuters.com/great-debate/?p=1037#comment-4069 “What is in the crude that makes it souer and worth less money?”

Sulphur and ash content.

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By: craig http://blogs.reuters.com/great-debate/2008/12/23/nymex-oil-benchmark-again-in-question/#comment-4042 Fri, 26 Dec 2008 22:01:10 +0000 http://blogs.reuters.com/great-debate/?p=1037#comment-4042 What is in the crude that makes it souer and worth less money?

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By: Larry http://blogs.reuters.com/great-debate/2008/12/23/nymex-oil-benchmark-again-in-question/#comment-3964 Thu, 25 Dec 2008 04:11:04 +0000 http://blogs.reuters.com/great-debate/?p=1037#comment-3964 I find myself in T.V.’ situation and I am unhappy about it. It is worth reading John Riley’s commentary of 12/17/2008 in Cornerstone Commentary – John Riley: Out of Touch With Reality [PDF] (12/19). He reminds us that oil is declining at a rate of 1/2% per day in contrast to a depletion rate of 6.7% per day. These rates suggest that at some not too distant time in the future; oil prices will again begin to rise significantly.

Larry

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By: gamingthemarket http://blogs.reuters.com/great-debate/2008/12/23/nymex-oil-benchmark-again-in-question/#comment-3888 Wed, 24 Dec 2008 07:53:56 +0000 http://blogs.reuters.com/great-debate/?p=1037#comment-3888 The Commodity Futures Trading Commission was run by Phil Gramm’s wife while the Senator acted as the strongest force of deregulation we’ve seen in generations.

Deregulation created a system of incentives that channeled the greed of an industry that has yet to have a crisis of conscience.

Deregulation: Catalyst to a Crash
http://www.gamingthemarket.com/2008/12/d eregulation-catalyst-to-crash.html

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By: Jeff J http://blogs.reuters.com/great-debate/2008/12/23/nymex-oil-benchmark-again-in-question/#comment-3879 Wed, 24 Dec 2008 02:41:51 +0000 http://blogs.reuters.com/great-debate/?p=1037#comment-3879 Very good article, the futures markets can work very well if the delivery process is not manipulated. Making several delivery points, with various grades would correct a very important part of the problem and help bring about “true” price discovery.

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By: DP http://blogs.reuters.com/great-debate/2008/12/23/nymex-oil-benchmark-again-in-question/#comment-3876 Wed, 24 Dec 2008 01:16:22 +0000 http://blogs.reuters.com/great-debate/?p=1037#comment-3876 excellent, a must read for oil investors imo

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By: Ben http://blogs.reuters.com/great-debate/2008/12/23/nymex-oil-benchmark-again-in-question/#comment-3860 Tue, 23 Dec 2008 22:12:11 +0000 http://blogs.reuters.com/great-debate/?p=1037#comment-3860 Clearly this is a major problem for crude but you ignore the same issue with heating oil. This contract for a product which is obsolete for much of the world is the only reference for diesel fuel. The contract is shamelessly manipulated and squeezed nearly every month by the major speculators who control the storage at the delivery point in New York harbor. The hedgers who actually participate in the physical market need a liquid contract for diesel fuel not heating oil and a delivery point that is not controlled by insiders.

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By: T.V http://blogs.reuters.com/great-debate/2008/12/23/nymex-oil-benchmark-again-in-question/#comment-3857 Tue, 23 Dec 2008 22:02:06 +0000 http://blogs.reuters.com/great-debate/?p=1037#comment-3857 I am the unlucky owner of a typical ETF that seems to trade these futures however ambiguously.

I believe that I have paid for the run down of oil prices from 44.0 to 33.87 once in January through this fund and am I suppose to be repeating a ride down of these prices from 42.36-down for February?!. I consider this to be legalized fraud.

I can imagine why option dealers would like play this game, they will jack the prices of the next month options just before current month expires to unload them to ETFs to buyers like me who would have no clue, laughing all the way to the bank they can short them too.

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