Top global traders seen to only have one Ligitimate oil company (Koch) the rest read to be speculators & fringe traders (possible exception of Vitrol). These are some folks boosting value based on speculation & not fundamentals for oil – the oil traders should be full of major international oil companies not agricultral & mining groups hedging energy cost & hoping make profits from speculating prices upward to cover their physical hedging insurance cost.
Citizen-Times Opinion back to Editor – John Larmon had very good point on this:
“Regarding oil prices, there is no shortage of crude, tanker tonnage, refinery capacity or distribution problems.
The majority of the recent price increases is due to “speculation,” people investing in crude futures. They are betting on supply shortages of crude due to disruption in supplies. To speculate, futures only requires a 7 percent investment in cash. The federal government has the power to raise the requirement to 22 percent but refuses to do so.”
Unfortunately John forgets that our Federal government is working for Wallstreet & not the people on this and ~ any other issue around regulation, fraud, and enforcement of laws for this group. It was procedure that was put in place by Alan Greenspan – the primary author of the US current financial/economic collapse because of his stupid belief that “free markets would regulate themselves”.