Thursday, August 21, 2008
A Few Speculators Dominate Vast Market for Oil Trading
Below are two excerpts from an article in today's Washington Post.
"The [Commodity Futures Trading Commission],... now reports that financial firms speculating for their clients or for themselves account for about 81 percent of the oil contracts on NYMEX, a far bigger share than had previously been stated by the agency. That figure may rise in coming weeks as the CFTC checks the status of other big traders."
"...investment funds have poured into the commodity markets, raising their holdings to $260 billion this year from $13 billion in 2003. During that same period, the price of crude oil rose unabated every year."
Full Article: http://www.washingtonpost.com/wp-dyn/content/article/2008/08/20/AR2008082003898.html?hpid=topnews