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Search: Posts Made By: Fat Tails
Forum: Commodities August 6th, 2013, 10:38 AM
Replies: 33
Views: 9,840
Posted By Fat Tails
As TheDude pointed out, you need to make a...

As TheDude pointed out, you need to make a difference between inventory (of physical oil) and open interest (of futures contracts) on the one side and trading volume (traders moving in and out of...
Forum: Commodities August 4th, 2013, 06:44 PM
Replies: 33
Views: 9,840
Posted By Fat Tails
Honestly, I do not have any idea about the size...

Honestly, I do not have any idea about the size of the OTC derivatives markets for crude oil. My comments were focused on the cash market, which is rather small. As to price discovery, I think that...
Forum: Commodities August 4th, 2013, 09:23 AM
Replies: 33
Views: 9,840
Posted By Fat Tails
The physical spot market is pretty small compared...

The physical spot market is pretty small compared to the futures market, even if you measure it by open interest.
Open interest for crude oil stand currently at

- 1.8 million contracts for NYMEX...
Forum: Commodities August 4th, 2013, 07:09 AM
Replies: 33
Views: 9,840
Posted By Fat Tails
Size of Spot Market and Cash Markets

I tried to find an indication of the size of the cash market for crude oil. there is a paper published by The Oxford Institute for Energy Studies, which includes a few estimations:

Light Crude Oil...
Forum: Commodities August 4th, 2013, 04:07 AM
Replies: 33
Views: 9,840
Posted By Fat Tails
Statements like "Every market has 4-6...

Statements like "Every market has 4-6 controlling players who 'own' the market" are good for the regular's table but not for a serious discussion. Term markets behave in a different fashion,...
Forum: Commodities July 14th, 2013, 03:41 AM
Replies: 33
Views: 9,840
Posted By Fat Tails
Of course there is speculation to some extent....

Of course there is speculation to some extent. Speculation leads to an overextension of price, as could well be observed for the gold (spot and futures) market. But speculation is not manipulation.
...
Forum: Commodities July 13th, 2013, 01:35 PM
Replies: 33
Views: 9,840
Posted By Fat Tails
Crude oil is a deliverable contract. This limits...

Crude oil is a deliverable contract. This limits speculation. A potential closure of the Suez Canal which is controlled by Egypt could affect supplies to Europe and has an impact on spot prices.
...
Forum: Commodities July 12th, 2013, 01:10 PM
Replies: 33
Views: 9,840
Posted By Fat Tails
What do you mean? ...

What do you mean?

https://nexusfi.com/attachment.php?attachmentid=118649
Forum: Commodities July 3rd, 2013, 03:16 PM
Replies: 33
Views: 9,840
Posted By Fat Tails
Had to leave when I made the post above. Here are...

Had to leave when I made the post above. Here are just some arguments in favor of the above comments:



(1) Pipeline capacity Cushing:

Inbound deliveries to Cushing have grown by 815,000...
Forum: Commodities July 3rd, 2013, 02:03 PM
Replies: 33
Views: 9,840
Posted By Fat Tails
I do not agree that the WTI/Brent spread has...

I do not agree that the WTI/Brent spread has anything to do with Egypt.

The delivery for WTI is Cushing, Oklahoma. There was a growing surplus of sweet crude in that area, which could not easily...
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