Home     Forum     401k     401k Rollovers
    Register   Login   Members   Search   FAQs     Recent Posts    




OPEC Was Never In Control (High Frequency Trading Was)

Reply to topic
Money Talk > Money Watch

Author Thread
dplat
Member


Cash: $ 2.30

Posts: 11
Joined: 22 Dec 2014

OPEC Was Never In Control (High Frequency Trading Was)  Reply with quote  

Hi Guys,
I found this article or issue yesterday and wanted to pass this along (consideration):

Saudi Oil Minister Ali al-Naimi to reporters: He blamed the fall in prices to half their levels of six months ago on "-- SPECULATORS --" and what he called a lack of cooperation from non-OPEC producers.

Comment By DH said:
OPEC was never in control; at least for the past decade. High Frequency Trading (HFT) of commodity contracts created a HFT premium. CME Rule 575 destroyed HFT commodity trading for the purpose of price manipulation. Prices were weaker before Rule 575 was implemented mid Sept 2014 and collapsed afterward. The $40 or so difference was the HFT premium paid to financial innovators. Not to buyers. Not to sellers. Not to traditional speculators. It was the equivalent of a street tax that was just removed. Prices today reflect actual economic activity, with probably a little crash effect from buyers of contracts a few months ago who thought prices would remain high forever. They're panic sellers now.

Refs:
http://www.reuters.com/article/2014/12/21/us-oil-prices-saudi-idUSKBN0JZ05W20141221
http://www.businessinsider.com/r-opecs-badri-says-oil-price-drop-beyond-market-fundamentals-2014-12#ixzz3MUNJgUCv

What would this imply (to drillers' accounting)?

Will High Frequency Trading Force A Market Redesign
http://www.advantagefutures.com/will-high-frequency-trading-force-a-market-redesign/


Last edited by dplat on Fri Jan 16, 2015 8:37 pm; edited 1 time in total
Post Mon Dec 22, 2014 1:24 am
 View user's profile Send private message
dplat
Member


Cash: $ 2.30

Posts: 11
Joined: 22 Dec 2014

 Reply with quote  

At first I'd assumed the price drop to be over supply, oil glut, price and market share battles, but then I ran across several articles calling this "Quantitative Easing" QE4. I'm now wondering about the actual price which drillers receive.
Post Mon Dec 22, 2014 2:50 am
 View user's profile Send private message
payment proof
Senior Member


Cash: $ 389.20

Posts: 1940
Joined: 16 Jan 2011

 Reply with quote  

It would be nice to see oil stay at a stable price. Dare to dream. Smile

See Proof. You can make free money online.
Post Mon Dec 22, 2014 5:00 am
 View user's profile Send private message Visit poster's website
dplat
Member


Cash: $ 2.30

Posts: 11
Joined: 22 Dec 2014

 Reply with quote  

T.Boone Pickens has several news interviews predicting prices to remain steady for another 12 to 18 months. He's calling this an oil glut, over-production, and calling everyone else misguided. Quantitative Easing would mean deflation across the board, and the Rule 575 law would align therein.

T.Boone Pickens Videos:
http://finance.yahoo.com/video/t-boone-pickens-where-oil-014100777.html
https://www.youtube.com/watch?v=LhYHWA_HjYY
Post Mon Dec 22, 2014 5:51 am
 View user's profile Send private message
dplat
Member


Cash: $ 2.30

Posts: 11
Joined: 22 Dec 2014

 Reply with quote  

Article today, Saudis threatening to raise production (cut price further). They're running scared: Scared to death of losing U$-NATO $ecurity blanket (marriage) and being taken over by radicals (IMO). ???
http://oilpro.com/post/9194/bold-to-boldest-saudi-says-prepared-to-raise-output-if-new-custom


Last edited by dplat on Wed Dec 24, 2014 4:33 am; edited 1 time in total
Post Tue Dec 23, 2014 1:31 am
 View user's profile Send private message
dplat
Member


Cash: $ 2.30

Posts: 11
Joined: 22 Dec 2014

 Reply with quote  

FWD from BusinessInsider dot com:
RNK wrote: "Identifying ISIS as a Sunni movement is a little too broad. You need to get a little closer if you want to form a more accurate picture. ISIS as is Al Qaeda, Al Nusra in Syria, Al Shabab in Somalia or Boko Haram in Nigeria all follow the Wahhabi ideology which is a subset of the much larger Sunni sect. The core of the Wahhabi ideology is in Saudi Arabia and that what gives the Wahhabis in Saudi Arabia such leverage over all those terrorist groups and what makes it so easy for members of any of those groups to move to other group seamlessly. While income is very important, what’s more important is getting a steady stream of recruits. To do that, the Saudi donations to various Wahhabi groups around the world established several decades ago remain crucial regardless of direct sources of income reaching those groups."
http://www.pbs.org/wgbh/pages/frontline/shows/saudi/analyses/wahhabism.html

T. Boone Pickens: OPEC Is Down, Now Let's Finish Them Off
"Guess who is paying for both sides on the War against Terrorism? You and me!" http://www.Newsmax.com/Finance/Pickens-OPEC-oil-US/2014/12/19/id/614014/#ixzz3MmtHmZAY
Post Wed Dec 24, 2014 4:32 am
 View user's profile Send private message
dplat
Member


Cash: $ 2.30

Posts: 11
Joined: 22 Dec 2014

 Reply with quote  

Cramer: OPEC in Big Trouble | CNBC
https://www.youtube.com/watch?v=9W9UCbfjiPg
Post Sat Jan 17, 2015 6:03 pm
 View user's profile Send private message
CrisAdams
New Member


Cash: $ 1.00

Posts: 5
Joined: 16 Jan 2015
Location: 3503 Jack Northrop Ave Hawthorne, CA 90250 USA
 Reply with quote  

I've read on Business Insider: In November 2014, OPEC decided not to cut production which lead to low oil prices. This new stance by Al-Naimi is likely a political tactic. Saudi Arabia wants the price of oil to go low enough that American producers in the newly drilled shale basins aren't making any money. Then they might stop flooding the market, giving Saudi Arabia back its position as the world oil leader.

Saudi Arabia's tactics are working, too. The US Energy Information Administration (EIA) recently reduced its forecast for production growth in 2015 by 100,000 barrels a day.
Post Tue Jan 20, 2015 5:01 pm
 View user's profile Send private message Visit poster's website
dplat
Member


Cash: $ 2.30

Posts: 11
Joined: 22 Dec 2014

 Reply with quote  

"The Price of Oil" 2009 60 Minutes Video
https://www.youtube.com/watch?v=WKunHXtQYuo
Post Sun Jan 25, 2015 11:02 pm
 View user's profile Send private message
dplat
Member


Cash: $ 2.30

Posts: 11
Joined: 22 Dec 2014

 Reply with quote  

Further proof OPEC no longer in control:
---
Goldman Sachs Video: Making Sense of Industry Transformation
https://www.youtube.com/watch?v=7IN_Z9LqCog
---


Last edited by dplat on Tue Feb 03, 2015 2:15 am; edited 1 time in total
Post Sat Jan 31, 2015 7:49 am
 View user's profile Send private message
Offshore-Wealth.com
Senior Member


Cash: $ 11.45

Posts: 557
Joined: 20 Jul 2005
Location: FREEDOMLAND
OIL PRICES MANIPULATED by MARKET SUPPLY and DEMAND  Reply with quote  

Nothing new, this happens everytime the Saudi's are threatened with new energy developments, the same we see today with fracking advancements, it is scaring the hell out of Saudi's, so they pump more oil to drive prices down. After all, this is supply and demand in its purest form, or manipulation as I would call it.

When supplies are pumped up, and the world economy slumps, you have a double barrel shotgun effect. When these new fracking operations are forced to stop for economic reasons, then the Saudi's will pull back creating a rise in oil prices. This is exactly what Saudi's did back in the 80's, so history repeats itself over and over again, so be prepared, oil will rise once again, just not this year.

Success to all,

FREE BILLION DOLLAR RECESSION PROOF BUSINESS OPPORTUNITY SAVING THOUSANDS WHEN YOU CUT THE CABLE & DUMP THE DISH FOR TV MOVIES PPV
www.FREE-VSTREAMTV.com
Post Sun Feb 01, 2015 3:42 pm
 View user's profile Send private message Visit poster's website
dplat
Member


Cash: $ 2.30

Posts: 11
Joined: 22 Dec 2014

Fed Caused Oil Crash (QE), Stocks Next  Reply with quote  

Fed Caused Oil Crash (QE), Stocks Next
https://www.youtube.com/watch?v=mdPcmeHoTfI
Post Fri Feb 06, 2015 7:38 am
 View user's profile Send private message

Reply to topic
Forum Jump:
Jump to:  
  Display posts from previous:      





Money Talk © 2003-2016