Posted on 07/13/2009 1:31:38 PM PDT by FromLori
Big speculators such as hedge funds and investment banks have sharply reduced their buying positions in oil futures in recent weeks, just as regulators are considering setting limits in energy speculation.
The drop in speculative positions likely contributed to last week's 10% slump in oil prices -- the biggest weekly loss in six months, analysts said.
Long, or buying, positions held by non-commercial traders, a category the regulator uses to classify big speculators, dropped by 16,382 contracts in the week ended July 7, according to the weekly Commitments of Traders report released by the Commodity Futures Trading Commission late Friday. One contract represents 1,000 barrels of oil.
That's the biggest drop in four months in oil futures traded on the New York Mercantile Exchange, according to COT historical data. Long positions held by speculators now stand at the lowest level since the week ended May 26.
Meanwhile, speculators increased their selling, or short, positions, resulting in a 60% slump in net long positions. Net long positions held by speculators now stand at 15,357 contracts, the lowest since May 12. See the latest COT report.
The change in speculative positions came as the CFTC announced on July 7, that it's considering setting limits in the number of positions speculators can take in the energy futures market. See full story.
The CFTC will hold a series of hearings starting from later this month, said David Gary, a spokesman for the Washington-based agency.
Oil prices tumbled nearly 6% in the two sessions ended July 7 on the Nymex. Over all, futures lost 10.3% last week -- the biggest weekly loss since the week ended Jan. 9.
In Monday's trading, oil prices continued to slide, falling to the lowest level in two months as demand concerns weighed on prices.
(Excerpt) Read more at marketwatch.com ...
You're unaware of the distinction between "speculators lower than whale manure" and honest, hard-working farmers seeking to insure against loss of their investment?
My Uncle Ed and Nephew Mike would be very unhappy to be grouped with the former...
http://www.fsa.usda.gov/FSA/webapp?area=home&subject=diap&topic=landing
Yes this is good.... Keep Wall Street parasites out of the energy and oil markets. What will actually happen is they won’t be able to take huge positions in oil. Only genuine producers and buyers will be able too
This is a return to how it was before 2000
These markets will have good liquidity minus Goldman Sachs and like bottom feeders
So, what? Any farmer who has an allotment receives them.
We got the same mailings. And received checks for not planting corn, cotton and soybeans -- even though we had converted the property to pecans and had no intention of planting any of them.
Like I said, so what?
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