Investors' Growing Appetite for Oil Evades Market Limits

Trading Loophole for Wall Street Speculators Is Driving Up Prices, Critics Say

The federal agency that oversees oil trading, the Commodity Futures Trading Commission, has exempted...[Hedge funds and big Wall Street banks] from rules that limit speculative buying, a prerogative traditionally reserved for airlines and trucking companies that need to lock in future fuel costs....Over the past five years, investors have become such a force on commodity markets that their appetite for oil contracts has been equal to China's increase in ... Full Story »

Posted by Beth Wellington

See All Reviews »

Review

Eu Lupu
4.0
by Eu Lupu - Oct. 1, 2008

A well written story about the "darkness" of the commodity futures market, oil trading in particular. The speculative nature of the market overwhelms. in my opinion more than ever, the so called "natural regulator" role of it. "Demand and supply", could have been lots of years back now is more and more controlled "demand and supply". And guess who is using this? The hedge funds that make millions to the million+ club member not your lame 401 K fund that basically funnel your money into their profits. All kind of "financial vehicles" popped up on the market (gee, there has to be a reason why financial stocks are not recommended now) and obviously the "innovation" continue. Everybody expects government regulations to do the job forgetting/or not knowing the new nature of commodities trading - "dark" and packed in layers of info that will take for ever to figure out. Only few (these billions dollars fund managers) can make these new world work in their favor although some of them crashes also. It is more an more an inner game where a regular investor is most of the time a looser.

See All Reviews »

Eu's Rating

Overall
4.0

Good
from 7 answers
Quality
4.0
Fairness
4.0
Information
4.0
Sourcing
4.0
Context
4.0
Popularity
4.0
Recommendation
4.0
Credibility
4.0
More How our ratings work »