Reason?
Increased demand and falling supply! I'm crapping you negative. Let me get this straight. Goldman leases a supertanker to store oil. They then recommend people short PBR puts. Now they come out today saying oil could reach $85. Wtf? Petro in storage is at a 25 year high and floating storage is at an all-time high. Yes, it can reach $85, but the tactics are absurd. Had this behavior took place one year ago, when oil was at $150, they would have all been bitch slapped by regulators because everyone was on a commodity speculator witch hunt. This level of speculation affects everyone with an implied tax. All so GS can reap the gain. Good job GS, you're predicting oil retraces to the FIRST fibonacci retracement from the peak. Thanks for that info [Edit: first fib on e-mini continous, 2nd fib on /CL]
Paging the CFTC/SEC. It's simple, we can not allow companies who's core business does not involve energy consumption to speculate at this size. Speculating is fine, but banks leasing supertankers is over the line. We have to impose limits on position sizes (delivery or not) and not allow this manipulation to continue. And no, Goldman, you can not buy a gas station to be considered an energy company. What's next? Contract the Pirates to steal the oil? Lease and fill Panamax ships with the soybeans that I shorted? Drive up the Baltic Dry Index and put out buy ratings on all the material names?
Can someone remind me as to why we repealed Glass-Steagall again?
