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RE: West Texas Intermediate – highest price

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#5937

Charles Randall
Participant

This October increase is just pure crude price speculation – just like current rise as hedge against Ida (that fizzeled out).
 
 Just hope I get to see these Mutual Fund traders & folks like Citi eventually gets what is due them. It has taken down lot big oil company trading groups & it will eventually get them going head on against fundamentals like they are doing.
 
Unfortunately they may take down a lot of refiners before anything is done. Most are still expecting to get in on the upside of these high speculation prices but with high level integration needed in industry these days just to compete with Government owned oil companies – it just means playing on sidelines is pushing more industry profits into the pot for speculators to rip out of the system.
 
Oil companies need to be shouting at Congress everyday to put in more barriers to non-oil industry speculation on this level.  Some slight concessions were made to increase size commodity & limit amount hedge but it is simple barrier for traders to get around. 
One biggest improvements recently was Aramco switching from Brent to Sour Crude marker for its index – that is lot harder for speculators to play since fewer companies capable taking in physical barrels & most wouldnt help commodity trader. It has made since for long time since sour crudes dominate the exports making up countries domestic crude imbalance & they actually ARE exposed to freight market swings unlike ther WTI & Brent sweet indexes that are meaningless for export/import crudes where 6 paper barrels are traded for every actual physical barrel sold.

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