Thursday, July 19, 2012
Forget "Libor Gate" .... Crude Oil Market Manipulation Is Far Worse
Consumers are paying an easy $35 dollars per barrel over what they would otherwise doll out for a barrel of oil, if fund managers didn`t use the benchmark futures contracts as their own personal ATMs.
Just a month ago Crude Oil WTI was $78 a barrel and today it is $93. Do you think the fundamentals changed one bit to merit this price swing? Nope! Supply levels are all at record highs around the world. Is it Iran? Please!! It is all about the money flows, nobody takes delivery anymore. Assets have become one big correlated risk trade.
Risk On, Risk Off. If the Dow is up a hundred, you can bet crude is up at least a dollar! It has nothing to do with fundamentals, inventory levels, supply disruptions, etc. It is all about fund flows.
Just click here to read the entire EconMatters article Forget "Libor Gate" .... Crude Oil Market Manipulation Is Far Worse
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