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lorad
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 Posted: Wed Jul 30, 2008 3:10 am Post subject: Gas Price Manipulators Go Bust; Result is Lower Prices |
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Quod demonstrandum est...Or..
The proof is in the pudding..
"Oil prices have retreated more than $20 dollars since. What caused
that? "
"Well, here>s where The Wall Street Journal as well as Reuters bring
an interesting theory. They say that the rise and fall in oil prices
coincided with energy company SemGroup L.P.'s
(mis)fortunes....SemGroup L.P. filed for Chapter 11 bankruptcy
protection Tuesday. According to the Journal, "Changes in its hedging
strategies coincided with big moves in oil recently."
"SemGroup>s losses from oil trading amounted to $3.2 billion. How can
a company lose so much in oil-trading when prices of oil just kept
increasing, you ask? By covering short positions, of course."
...
Does this add up?
Let>s see..
Two week period = 20 million x 14 days; 280 million barrels used
during that 14 day period.
280 million barrels x $20 (14 day end price differential) = $5.6
billion.
( x $10 (averaged 7th day price differential) = $2.8 billion)
Yes it adds up.. the entire decline in gas price seems tacked to the
collapse of the SemGroup and the loss of its $3.2 billion.
Which seems proof positive that high gas prices are caused by price
manipulation.
Quotations from:
http://www.bloggingstocks.com/2008/07/25/has-semgroup-caused-the-recent-oil-runup-and-selloff/ |
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T. Keating
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| Posted: Thu Jul 31, 2008 6:28 pm Post subject: Re: Gas Price Manipulators Go Bust; Result is Lower Prices |
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On Tue, 29 Jul 2008 20:10:37 -0700 (PDT), lorad <lorad474@cs.com>
wrote:
[quote]Quod demonstrandum est...Or..
The proof is in the pudding..
"Oil prices have retreated more than $20 dollars since. What caused
that? "
"Well, here>s where The Wall Street Journal as well as Reuters bring
an interesting theory. They say that the rise and fall in oil prices
coincided with energy company SemGroup L.P.'s
(mis)fortunes....SemGroup L.P. filed for Chapter 11 bankruptcy
protection Tuesday. According to the Journal, "Changes in its hedging
strategies coincided with big moves in oil recently."
"SemGroup>s losses from oil trading amounted to $3.2 billion. How can
a company lose so much in oil-trading when prices of oil just kept
increasing, you ask? By covering short positions, of course."
[/quote]
They went broke "Covering short positions"..
I.E Actually buying product to cover a futures contract they sold
at a lower price..
That bankrupted them, now they no longer need to cover anything,
they are broke. People holding unfilled SemGroup>s futures contacts
are also screwed.
Removal of this player from the futures markets has put a damper
on the whole market.. (Now they>re looking at the non-players and
wondering, if they have the resources to actually cover their
positions.)
[quote]..
Does this add up?
Let>s see..
Two week period = 20 million x 14 days; 280 million barrels used
during that 14 day period.
280 million barrels x $20 (14 day end price differential) = $5.6
billion.
( x $10 (averaged 7th day price differential) = $2.8 billion)
Yes it adds up.. the entire decline in gas price seems tacked to the
collapse of the SemGroup and the loss of its $3.2 billion.
Which seems proof positive that high gas prices are caused by price
manipulation.
Quotations from:
http://www.bloggingstocks.com/2008/07/25/has-semgroup-caused-the-recent-oil-runup-and-selloff/
[/quote]
Thanks for the heads up.. |
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