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Oil up $25 a barrel because of bailout - 9/22/2008 2:24:47 PM

kdsub

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Why can't we put a stop to ...THIS... kind of outlandish speculating?

Butch

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RE: Oil up $25 a barrel because of bailout - 9/22/2008 4:32:42 PM

Thadius

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Hiya Butch,

Actually most of the run up today was due to the end of the month call on all of the short sells. In other words all of the outstanding short sold positions had to be paid off today, which equates to buy orders (bids). The possible devaluation of the dollar may have played a part in it as well. I would guess this was a one day run up.

Just my thoughts,
Thadius

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RE: Oil up $25 a barrel because of bailout - 9/22/2008 5:05:15 PM

kdsub

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Hi Thadius...the article says it is the largest single day increase in oil... ever... This is not normal end of month short sells... It is more of the wild speculation on oil...This behavior needs to be reined in..I'll guarantee you there will be a corresponding jump in fuel prices at the pump as well.

I understand how if the dollar is devalued there will need to be an adjustment on the world oil market..BUT..it should only be applied IF the dollar is devalued...not maybe.

Butch

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RE: Oil up $25 a barrel because of bailout - 9/22/2008 7:33:40 PM

corysub

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quote:

ORIGINAL: kdsub

Hi Thadius...the article says it is the largest single day increase in oil... ever... This is not normal end of month short sells... It is more of the wild speculation on oil...This behavior needs to be reined in..I'll guarantee you there will be a corresponding jump in fuel prices at the pump as well.

I understand how if the dollar is devalued there will need to be an adjustment on the world oil market..BUT..it should only be applied IF the dollar is devalued...not maybe.

Butch

Have got to agree with Thadius on this one. The next maturity month in the futures is around the $108 level. That's about where it would be selling Tuesday...or lower, I would think. Today's price was purely technical and had nothing to do with the Paulson plan.

< Message edited by corysub -- 9/22/2008 7:34:09 PM >

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RE: Oil up $25 a barrel because of bailout - 9/22/2008 7:59:43 PM

TieNTeas

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I spoke to some trader friends and they said it was the lack of people trading the October contract that created the added volatility. This is one reason removing speculators is not good. It creates an illiquid market. As mentioned, the November contract, which is what will be quoted by the media starting tomorrow, is around $109 at the moment.

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RE: Oil up $25 a barrel because of bailout - 9/22/2008 9:26:48 PM

Thadius

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**Fast Reply**

Also one must remember that there is a freeze on short selling right now, that would have normally kept the bid price in check. Just a technical anomaly.

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RE: Oil up $25 a barrel because of bailout - 9/23/2008 2:48:00 AM

pahunkboy

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China does not charge to watch cctv9.

their news said it is a 25% devaluation of the dollar.

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RE: Oil up $25 a barrel because of bailout - 9/23/2008 4:02:58 AM

corysub

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Oil is trading below $104 this morning. As we have discussed, yesterdays move was mostly technical.

With respect to shorting, shorting stocks, other than financials, is still allowed under the rules. However, institutions have to report short sales to the SEC which will than release at least some of the data to the public.

http://www.sec.gov/rules/other/2008/34-58591a.pdf

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