Not as easy as it looks
Jun. 11th, 2008 10:41 pm![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
libertangoI meant to point out the FT post yesterday, but never did. I just made this comment to ![[livejournal.com profile]](https://www.dreamwidth.org/img/external/lj-userinfo.gif)
intelligentrix, though. So...
*^*^*^*
There's speculation in the oil market, sure.
But it might not be in the direction you think.
"Oil speculators caught short by backing falls in price of crude," in the Financial Times yesterday.
Basically, a great many speculators had short positions in the oil market -- they expected prices to go down. When oil prices jumped last week, they had to do the equivalent of margin calls, and raise a lot of cash quickly to cover their losses when oil not only didn't drop as expected, but spiked. (Think of the Orange County bankruptcy, which had a similar problem with bond interest rates.)
None of this, of course, is a surprise to the peak oil crowd.
intelligentrix, though. So...*^*^*^*
There's speculation in the oil market, sure.
But it might not be in the direction you think.
"Oil speculators caught short by backing falls in price of crude," in the Financial Times yesterday.
Basically, a great many speculators had short positions in the oil market -- they expected prices to go down. When oil prices jumped last week, they had to do the equivalent of margin calls, and raise a lot of cash quickly to cover their losses when oil not only didn't drop as expected, but spiked. (Think of the Orange County bankruptcy, which had a similar problem with bond interest rates.)
None of this, of course, is a surprise to the peak oil crowd.
