Derivatives markets, storage and price volatility

Michael Giberson I found this discussion of spot oil prices, futures prices, and commodity storage to be insightful: [R]ecent evidence suggests that the combination of derivative prices and storage stabilized rather than destabilized the oil markets. Indeed, during the run up in oil prices at the beginning of 2008 the spot price for oil was … More Derivatives markets, storage and price volatility

Geoff Styles on the CFTC’s desire to fix up energy futures markets

Michael Giberson Geoff Styles: Speculation Witch Hunt? He says he thinks “the CFTC and its supporters in Congress and the administration are barking up the wrong tree, altogether, based on a fundamental misunderstanding of the markets.” the current determination to clamp down on speculation appears to be based on two hypotheses that are … probably … More Geoff Styles on the CFTC’s desire to fix up energy futures markets

CFTC to consider position limits on energy futures contracts

Michael Giberson The chairman of the Commodity Futures Trading Commission, Gary Gensler, has announced that the agency will hold a series of meetings in July and August to consider how it can use its existing statutory authority to “ensure the fair, open and efficient functioning of futures markets.” The first of the meetings will focus … More CFTC to consider position limits on energy futures contracts

Onions, oil, speculators, congress

Michael Giberson From Platts Power Line blog, a discussion of the 1958 law banning of futures trading in onions and suggestions that Congress should contemplate the lessons from that experience before it gets too exciting about clamping down on speculation in energy commodities. The ban on onion futures trading, introduced by freshman congressman Gerald Ford … More Onions, oil, speculators, congress