Crude Oil Futures Speculator Crooks Drive Up Oil Prices and Cause Financial Crisis

[Guest Enron Ex]

Pay attention to the CFTC and how they are protecting the interests of Wall Street firms at the expense of ordinary consumers

[Guest LAW_*]

You are right. Here are the first ones caught. I do not see the mainstream media covering this. How can I contact you?

 

CFTC Charges Optiver Holding BV, Two Subsidiaries, and High-Ranking Employees with Manipulation of NYMEX Crude Oil, Heating Oil, and Gasoline Futures Contracts

 

Defendant Caught on Tape and in Email Saying He Would “Bully” the Market

Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) announced today its case against Optiver Holding BV, two of its subsidiaries, and three employees, charging them with manipulation and attempted manipulation of New York Mercantile Exchange (NYMEX) Light Sweet Crude Oil, New York Harbor Heating Oil, and New York Harbor Gasoline futures contracts during March 2007.

 

The CFTC filed the civil enforcement action in the United States District Court for the Southern District of New York against Optiver Holding BV, a global proprietary trading fund headquartered in the Netherlands, and two subsidiaries – Optiver US, LLC (Optiver), a Chicago-based corporation, and Optiver VOF, a Dutch company. The complaint also names defendants Christopher Dowson (head trader of Optiver), Randal Meijer (head of trading and supervisor of Optiver and Optiver VOF) and Bastiaan van Kempen (Chief Executive Officer of Optiver).

 

The complaint charges all defendants with 19 separate instances of attempted manipulation involving the aforementioned energy futures contracts on 11 days in March 2007. The complaint further alleges that in at least five of those 19 attempts, defendants successfully manipulated certain of these energy futures contracts, causing artificial prices. In three of those instances, defendants forced futures prices lower, and in two instances, defendants forced futures prices higher. The complaint alleges that defendants profited by approximately $1 million from their manipulative scheme.

 

According to the complaint, the defendants employed a manipulative scheme commonly known as “banging” or “marking”’ the close. “Banging the close” refers to the practice of acquiring a substantial position leading up to the closing period, followed by offsetting the position before the end of the close of trading for the purpose of attempting to manipulate prices.

 

The complaint further charges Optiver and van Kempen with concealing the manipulative scheme and making false statements in response to an inquiry from NYMEX.

 

“These charges go to the heart of the CFTC’s core mission of detecting and rooting out illegal manipulation of the markets,” said CFTC Acting Chairman Walt Lukken. “The CFTC’s Enforcement Division aggressively pursues and punishes manipulative activity to bring offenders to justice and deter others from attempting to harm the markets. Although this alleged energy trading scheme lasted only several days in March 2007, even short-term distortions of prices will not be tolerated by the Commission.”

 

“The men and women of the Division of Enforcement are working tirelessly to pursue every investigative lead involving potential wrongdoing in the commodities markets, including our nation’s vital energy markets,” said Acting Enforcement Director Stephen Jay Obie. “We use every resource available to uncover wrongdoing and to make sure that violators of the Commodity Exchange Act are tracked down and brought to justice.”

 

The Energy Futures Contracts Manipulated by Defendants

 

The defendants’ manipulative trading scheme involved three futures contracts listed for trading on the NYMEX: the Light Sweet Crude Oil futures contract (Crude Oil, also referred to as West Texas Intermediate (WTI)), the New York Harbor Heating Oil futures contract (Heating Oil), and the New York Harbor Reformulated Gasoline Blendstock futures contract (New York Harbor Gasoline). The settlement price for the Crude Oil, New York Gasoline, and Heating Oil futures contracts is derived by calculating the volume weighted average prices of futures trades conducted during the closing period for the contracts (from 2:28 to 2:30 p.m.). The volume weighted average price is referred to commonly as the VWAP.

 

The defendants’ manipulative scheme involved the Trading at Settlement (or TAS) contracts in Crude Oil, Heating Oil, and New York Harbor Gasoline contracts. TAS contracts are futures contracts, except that the parties determine at the initiation of the contract that the price of the TAS contract will be the day’s settlement price plus or minus an agreed differential. A TAS contract which has been bought or sold can be offset by trading a futures contract in the opposite direction.

 

The Manipulative Scheme

 

The manipulative scheme, in defendant Dowson’s words, to “bully the market,” involved trading a significant volume of futures contracts in Crude Oil, Heating Oil, and New York Harbor Gasoline in the opposite direction of the associated TAS position, before and during the close of the contracts. The defendants’ goal in trading the large volume of futures was to improperly influence and affect the price of futures contracts in Crude Oil, Heating Oil, and New York Harbor Gasoline. The defendants’ manipulative scheme was, in the words of defendant Meijer, “built on the idea that we can control the VWAP.”

 

As alleged in the complaint, the scheme ultimately permitted defendants to profit regardless of the direction of the market move, provided that Optiver’s futures trading in the close and before the close was in the opposite direction of the TAS position it had accumulated during the trading day.

 

For further detail on the allegations, please see the complaint and background documents found in Related Links.

 

The Commission wishes to thank the U.K. Financial Services Authority and the New York Mercantile Exchange for their assistance with this investigation.

 

The following CFTC Division of Enforcement staff members are responsible for this matter: Manal Sultan, David Acevedo, David MacGregor, Michael Berlowitz, David Oakland, R. Stephen Painter Jr., Eliud Ramirez, Derek Shakabpa, Judith Slowly, Lara Turcik, Lenel Hickson Jr. and Vincent McGonagle. Michael Penick and Andrei Kirilenko from the CFTC’s Office of Chief Economist are also responsible for this matter, as well Dr. Young Hwan Byeon, an Economist from the Korean Financial Supervisory Service.

[Luke_Wilbur]

So much for Walter Lukken and Goldman Sachs saying there is no manipulation in the futures market.

[Guest Tuke for Tennessee]

Lamar Alexander has received $359,975 from PACs and executives from Big Oil corporations. He is the heart of this mess.

[Guest Sudhir Kapur]

According to Barclays Research, there has been a 20-fold increase in participation in commodity futures market by investment funds — from $13 billion in December 2003 to $260 billion in March 2008. Investments have primarily been in 25 commodities constituting energy (49%), agriculture (21%), precious metals (19%) and base metals (11%).

 

Some commodity producing countries have set up sovereign wealth funds, which are also aggressive investors in commodity index futures, and have been benefiting from the windfall gains from the rise in commodity prices, besides an increase in the value of index futures.

 

Excessive speculation is also because commodity exchanges permit hedge, index, pension and other investment funds to hold futures contracts far outnumbering those held by actual hedgers, and the activities of these funds are marginalising the latter gradually.

 

http://www.iift.edu

[Guest Enron Ex]

Potential new US legislation in the commodities markets has triggered Wall Street Banks to liquidate their positions. Oil prices will fall even lower if pressure persists. The weekly open interest at the New York Mercantile Ex-change fell last week to the lowest level since December 2006, according to the Commodity Futures Trading Commission, the US regulator. It is down about 21.5 per cent from a peak last July. The drop has coincided with unprecedented downward swings in oil prices and the increased value of the dollar.

[Guest Muklis]

I think that consumers are curbing the amount of driving time and I believe that oil prices could fall to $70 to $80 a barrel in the long-term, if the U.S. dollar continues to strengthen and political anxieties get eased.

[Guest LAW_*]

These are the people that make everyone else suffer.

 

Ride The Profit Wave All The Way

To The Bank With $200 Oil

 

Oil at $200?! I know what you’re thinking… they’re crazy!

 

But it's amazing; in about a year, we've watched the price of oil soar 194%. It’s already hit the $100 mark. Heck, it’s hit the $120 mark. It’s even passed $140. And frankly, even if we see any temporary correction, it’s going to keep right on climbing.

 

This is your perfect opportunity to make some big money… if you know where

to look. To help you do that, we’ve assembled the very best investment opportunities in oil — 5 oil stock picks in all.

 

http://www.taipanpublishinggroup.com/TPG_oil_stocks.html

[Guest Jeremy]

Economists are now arriving at a consensus that the skyrocketing commodity prices can be best explained in terms of "too much money chasing too few commodities. The Fed is printing money and is trying to prevent a recession. Price pressures across the world are reaching levels that may soon threaten economic, political and social stability. Congress could open all areas of America’s coast to drilling and exploration, including the OCS, and consumers wouldn’t see an impact on prices before 2030. I cannot understand why the bill to stop excess speculation is being so strongly resisted.

[Guest JesseLee]

Unregulated oil traders and unaccountable oil corporations control well-oiled Congressional Republicans by means of huge campaign contributions. The market is doing a stellar job diverting the public’s attention from the true source of our energy woes by offering us what are basically individualist solutions aimed at reducing personal energy consumption.

 

IntercontinentalExchange Holdings Inc stated their quarterly profit rose 58 percent. Record trading volume on crude oil contracts brought the company's second-quarter earnings to $84.9 million.

 

There's going to be continued rotation out of energy stocks if we continue to see weakening oil prices. - Wayne Wilbanks, chief investment officer at Wilbanks Smith & Thomas in Norfolk, Virginia, which manages $1.2 billion.

 

Representatives voted 276-151 for the bill to tighten position limits on energy futures contracts. But a two-thirds majority was needed to pass the bill, which was debated under rules that prevented any amendments.

 

Mitch McConnell and his fellow Republicans have basically been filibustering every bill til the oil companies get what they want.

[Guest Bought By Big Oil]

Unregulated oil traders and unaccountable oil corporations control well-oiled Congressional Republicans by means of huge campaign contributions. The market is doing a stellar job diverting the public’s attention from the true source of our energy woes by offering us what are basically individualist solutions aimed at reducing personal energy consumption.

 

IntercontinentalExchange Holdings Inc stated their quarterly profit rose 58 percent. Record trading volume on crude oil contracts brought the company's second-quarter earnings to $84.9 million.

Representatives voted 276-151 for the bill to tighten position limits on energy futures contracts. But a two-thirds majority was needed to pass the bill, which was debated under rules that prevented any amendments.

 

Mitch McConnell and his fellow Republicans have basically been filibustering every bill til the oil companies get what they want.

 

Since Mitch McConnell’s current term began, gas prices have risen from $1.48 to $3.90 per gallon while oil companies have earned over half a trillion dollars in profits. No wonder Big Oil has invested so heavily in Mitch McConnell.

 

McConnell’s salary may be paid for by the people of Kentucky, but he’s Bought by Big Oil. Over his career in the Senate, McConnell has taken $649,011 from the oil and gas industry. McConnell Voted for $5 Billion Tax Break for Big Oil. In May 2006, McConnell voted to provide $5 billion in tax breaks to big oil companies over five years. This money could have been used to provide tax cuts to the middle class that were instead eliminated.

[Guest JesseLee]

Yeah! Don't forget about Republican Senator Ted Stevens of Alaska. He was indicted on Tuesday on seven felony counts of failing to disclose gifts that he received from an oil services company.

 

Mitch McConnell appeared alone before reporters at a regular briefing usually attended by most of the GOP leadership. He appeared grim and spoke briefly on Stevens. "The Republican conference, like you, just heard of this news," McConnell said. "No doubt we'll have more to say about this later." He turned from reporters' shouted questions and walked away.

 

It just a matter of time before this scam starts imploding. Several other past and present Republican members of Congress are under investigation by the Justice Department anti-corruption lawyers.

[Guest Tomias]

We Scots have problems too you know! Do you really think the London oil market give a rat's ass about your or me. It has been designed only to benefit its member traders. The so-called London loophole, created by the Labour government, excuses the London oil market from independent and transparent oversight. Traders' positions are unpoliced; the scope for market manipulation is vast, the extent unknown. Parliament has resisted worldwide criticism, arguing that London-based speculation and rigging has nothing to do with the oil price rise; but the $25 a barrel collapse in the price over the last three weeks as speculators unwind their position has made our government's argument untenable.

[Guest Desert Rat]

The Arabs are causing this. They own part of our media like Fox news. They own part of our large investment groups like Citigroup and the Carlyle Group. They own part of the futures market. I can easily see oil future manipulation happenning. We know they have finacial ties to Iran and Al qaeda and our own government.

 

Thank God we never gave them our ports and the Stock exchange. The only way this mess will ever be verified is for us to have transactions in the oil futures market completely transparent. Then we can see who is causing the price of oil to run up.

[Guest Enron Ex]

You are actually more correct than you might imagine. Another piece of the Carlyle portfolio has crashed. SemGroup LP (the 12th-largest private U.S. company) suspended its co-founder and chief executive Thomas Kivitso and was forced to recognize $2.4 billion in losses on NYMEX crude oil futures when it transferred its trading position to Barclays Plc (BARC.L).

 

SemGroup told investors its operating cash flow could reach $600 million this year before the cost of hedging its physical oil trading business which bought or sold more than 500,000 barrels of oil a day. SemGroup had large “short” positions on crude-oil contracts, which were essentially bets that oil prices would fall. As part of its business, SemGroup uses these contracts — which commit the company to sell oil at fixed prices at future dates — to hedge its inventory and future oil purchases.

 

"Rather than simply engaging in prudent hedging strategies that somehow went awry, the debtors were speculating with the lenders' collateral, employing unauthorized option trading strategies in violation of the debtors' own (woefully inadequate) risk management policies and in violation of numerous covenants under the credit agreement,” the filing Wednesday said.

 

Some creditors suggest the possibility that fraudulent trades may have caused the collapse. A conflict of interest was spotted when it was found that $290 million is owed to SemGroup shareholders by Thomas Kivitso's personal trading company.

 

 

SemGroup, L.P.

Tulsa , OK U.S.

 

Carlyle/Riverstone Energy II

Acquired: January 2005

Status: Current

 

SemGroup, L.P. gathers, transports, stores and markets crude oil, refined products, natural gas liquids and natural gas in the U.S. and Canada. SemGroup also owns and operates strategic pipelines, storage terminals and other midstream assets.

 

http://www.carlyle.com/Portfolio/item7385.html

 

Hopefully shareholders will read this post before the September class action lawsuit deadline.

 

Kahn Gauthier Swick, LLC ("KGS") notifies non-U.S. shareholders and others with losses greater than $100,000 that September 19, 2008 is the deadline to file lead plaintiff applications in a securities fraud class action pending in the United States District Court for the Southern District of New York, on behalf of shareholders who purchased the common stock of SemGroup Energy Partners, L.P. ("SGLP" or the "Company") (Nasdaq: SGLP) between February 20, 2008 and July 17, 2008, inclusive (the "Class Period"). No class has yet been certified in this action.

 

If you would like to discuss your legal rights, you may e-mail or call KGS Managing Partner Lewis Kahn, without obligation or cost to you, toll free 1-866-467-1400, ext. 100, via cell phone after hours at 504-301-7900, or by email at lewis.kahn@kgscounsel.com. Shareholders are encouraged to provide their email address in all communications.

 

SGLP and certain of the Company's officers and directors are charged with making a series of materially false and misleading statements related to the Company's business and operations in violation of the Securities Exchange Act of 1934 (the "Exchange Act").

 

If you wish to serve as lead plaintiff in this class action lawsuit, you must move the Court no later than September 19, 2008. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. If you would like to discuss your legal rights, you may e-mail or call KGS Managing Partner Lewis Kahn, without obligation or cost to you, toll free 1-866-467-1400, ext. 100, after hours via cell phone 504-301-7900, or by email at lewis.kahn@kgscounsel.com. To learn more about KGS, you may visit www.kgscounsel.com. KGS is a law firm focused on securities class action litigation with offices in New Orleans and New York City.

 

KGS' lawyers have significant experience litigating complex securities class actions. Among other cases, KGS has been appointed Lead or Co-Lead Counsel in the following securities cases: In re: U.S. Auto Parts Networks, Inc. Securities Litigation, C.D. Cal.; In re Optionable, Inc. Securities Litigation, S.D.N.Y.; In re Xethanol Corporation Securities Litigation, S.D.N.Y.; Pixelplus Co. Ltd., S.D.N.Y.; In re Witness Systems Inc. Securities Litigation, N.D. Ga.; Whitney Information Network, M.D. Fla.; Bodisen Biotech, Inc., S.D.N.Y.; Pegasus Wireless Corp., S.D. Fla.; In re Xinhua Finance Media, Ltd. Securities Litigation, S.D.N.Y.; Terayon Comm. Systems Inc., N.D. Cal.; Gaming Partners, D. Nev.; and In re BigBand Networks, Inc. Securities Litigation, N.D. Cal.

 

SPECIAL NOTICE: KGS encourages you to carefully evaluate any firm you may consider to represent your interests in the SGLP class action. The Private Securities Litigation Reform Act ("PSLRA") permits SGLP shareholders to choose counsel of their choice to prosecute this action. Critical components of a law firm's ability to successfully prosecute this action and obtain a strong recovery for you include the resources it will dedicate to prosecution of the case, including the number of lawyers the firm has available for the SGLP action in particular, AND especially the quality of the firm's work. Interested shareholders are encouraged to call for consultation and to request more information about KGS. While KGS has not filed suit yet, the firm is currently conducting its own investigation of SGLP and invites shareholders to evaluate its complaint when choosing counsel.

 

CONTACT:

 

Kahn Gauthier Swick, LLC

Lewis Kahn

1-866-467-1400, ext. 100

Lewis.kahn@kgscounsel.com

 

The Tulsa, Oklahoma-based company filed for bankruptcy after suffering $3.2 billion in losses on energy futures and derivatives trades that SemGroup says were designed to protect its physical oil trading business.

 

SemGroup L.P. said today that the U.S. Bankruptcy Court for the District of Delaware has approved a $150 million interim debtor-in-possession (DIP) financing, which will be provided by a group of banks led by Bank of America. The interim funding will be used to fund letters of credit to ensure the return of terms with certain product and service suppliers. The company is working with the lenders to finalize the revised order and expect to present the final order to the Court in an expedited fashion.

 

A final hearing to consider the balance of the $250 million DIP financing is scheduled for August 18, 2008.

 

“Obtaining this interim DIP financing is an important step forward in our Chapter 11 process,” said Terry Ronan, SemGroup acting president and CEO. “The additional reassurance it provides to our creditors and employees will be essential in our ability to execute the plan we have created to maximize value for creditors.”

 

SemGroup believes the best alternative to maximize value for creditors is to undertake a sales process that will transition the company’s businesses to well-established companies that can carry forward SemGroup’s mission. “We have already received significant interest in our assets because of our talented and experienced employees, unique industry position, expansive customer base and premiere service capabilities," Ronan said.

 

SemGroup and certain of its North American subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code on July 22, 2008.

 

About SemGroup

SemGroup, L.P., is a midstream service company providing the energy industry means to move products from the wellhead to the wholesale marketplace. SemGroup provides diversified services for end users and consumers of crude oil, natural gas, natural gas liquids, refined products and asphalt. Services include purchasing, selling, processing, transporting, terminaling and storing energy. SemGroup serves customers in the United States, Canada, Mexico, Wales, Switzerland and Vietnam.

 

http://www.semgrouplp.com/newsandmedia/pre...E-B4EBCB165A09}

 

Congress should pay close attention to the following cases.

 

SEMCRUDE, L.P., 08-11525

 

7/22/2008 0811525-001 0001 SemCrude, L.P.

7/22/2008 0811526-001 0001 Chemical Petroleum Exchange, Incorporated

7/22/2008 0811527-001 0001 Eaglwing, L.P.

7/22/2008 0811528-001 0001 Grayson Pipeline, L.L.C.

7/22/2008 0811529-001 0001 Greyhawk Gas Storage Company, L.L.C.

7/22/2008 0811530-001 0001 K.C. Asphalt, L.L.C.

7/22/2008 0811531-001 0001 SemCanada II, L.P.

7/22/2008 0811532-001 0001 SemCanada, L.P.

7/22/2008 0811533-001 0001 SemCrude Pipeline, L.L.C.

7/22/2008 0811534-001 0001 SemFuel Transport, L.L.C.

7/22/2008 0811535-001 0001 SemMaterials Vietnam, L.L.C.

7/22/2008 0811536-001 0001 SemGas Gathering, L.L.C.

7/22/2008 0811537-001 0001 SemKan, L.L.C.

7/22/2008 0811538-001 0001 SemFuel, L.P.

7/22/2008 0811539-001 0001 SemManagement, L.L.C.

7/22/2008 0811540-001 0001 SemGas Storage, L.L.C.

7/22/2008 0811541-001 0001 SemMaterials, L.P.

7/22/2008 0811542-001 0001 SemGas, L.P.

7/22/2008 0811543-001 0001 SemTrucking, L.P.

7/22/2008 0811544-001 0001 SemGroup Asia,

7/22/2008 0811545-001 0001 SemStream, L.P.

7/22/2008 0811546-001 0001 Steuben Development Company, L.L.C.

7/22/2008 0811547-001 0001 SemGroup, L.P.

7/22/2008 0811548-001 0001 SemOperating G.P., L.L.C.

 

Someone should also compare the dates of Semgroups "Short Bets" with the days gas prices went down. This will become the next big "Enron" story with some of the same players behind the scenes getting away once again.

[Luke_Wilbur]

You are sooooo right. Thanks for that post. I am now understanding why the oil and natural gas companies are against excessive speculation betting that the price of oil will go down. This has to be one of the biggest gambles in history.

 

SEMGROUP owes the following to each creditor:

 

BP Oil Supply $159,004,586.33

Need to call Dan Rosen

630-836-4544

 

Sunoco Partners Marketing & Terminals, LP $88,894,558.05

Need to call Tony Gallo

215-977-6897

 

PIMCO $86,000,000.00

Need to call Mark Afrasiabi

949-720-6052

 

Valero, L.P. $79,256,580.33

Need to call Belinda Haecker

210-345-2064

 

Western Asset Management Company $77,000,00.00

Need to call Gibson Cooper

626-844-9672

 

ConocoPhillips $74,178,603.57

Need to call Craig Cooper

918-661-1559

 

Noble Energy, Inc. $60,606,785.99

Need to call Dan Cooper

281-876-8844

 

Plains All American Pipeline $59,810,094.61

Need to call Mike McBride

713-646-4178

 

Merrill Lynch Asset Management $55,000,000.00

Need to call Paul Sharkey

212-449-9208

 

National Refinery Association $53,733,667.49

Need to call Mary Minor

620-241-2340

 

Central Crude Corporation $52,196,576.53

Need to call Sally Phillips

316-337-8378

 

Husky Energy Marketing Inc $50,137,775.70

Need to call Steve Downing

403-298-6727

 

Crescent Point Energy Trust $42,528,684.71

Need to call Barb Berry

403-815-4839

 

Crude Marketing & Transportation $40,841,569.10

Need to call 9185856790

 

ChevronTexaco Corp. $37,239,527.96

Need to call Brian DePriest

8328545278

 

Alon USA, LP $36,455,472.13

Need to call Michael Dodson

9723673621

 

Eaton Vance Management $28,000,000.00

Need to call David Zimmerman

6175988107

 

Bain Capital / Sankaty $27,500,000.00

Need to call David Stein

6175162690

 

Apache Canada LTD. $27,150,273.21

Need to call John Chung

7132966615

 

Fountain Capital Management $27,000,000.00

Need to call Zachary Hamel

9133452766

 

Arc Energy Trust $26,248,628.22

Need to call 4035038600

 

Muzinich & Company $25,000,000.00

Need to call Anthony Iorfino

2122040092

 

Legal and General Investment Management $25,000,000

Need to call David North

442075286676

 

Teppco Crude Oil, LLC $24,872,655.56

Need to call Gary Yager

7133813639

 

Deutsche Capital $24,000,000.00

Need to call Angelo D'Urso

2122505843

 

Pioneer Natural Resources USA, Inc. $23,206,840.23

Need to call Jamie Fuselier

9729693671

 

Cimmaron Transportation $22,816,845.67

Need to call John Schmitz

9406654373

 

Nexen Marketing Inc. $22,348,620.93

Need to call Fred Pacione

4036994075

 

Cenral Kansas Crude, LLC $21,778,328.71

Need to call 6206729484

 

Royal Dutch Petroleum $17,492,528.71

Need to call Miguel Correa

7132305120

 

I listed all the contact names in hopes that some of you give them a call and get the whole story and what is their opinion of oil futures speculation.

 

Also what dates was the future contract made with the creditor will be important.

[Guest LAW_*]

Here is an interesting factoid. Tom Kivisto was a member of the University of Kansas basketball team from 1970 to 1974. While there, Kivisto was a member of KU’s 1971 and 1974 NCAA Final Four teams. He was named Academic All American, All Big 8 and Academic All Big 8. He holds the single game assist record for the Kansas team. Kivisto played high school basketball in the Chicago area where he was born. He is a member of the Illinois Basketball Hall of Fame. His post-graduate work was in urban planning.

[Guest Jet]

I feel sad for the company's 2,000 employees that will most likely be laid off. Tom Kivisto is a very bad man.

[Guest Stevo]

Hey people,

 

All these posts are mind boggling. It took me a day to read most of them. It is interesting to see the linear progression of frustration in the States. Most people I speak with do not even understand the oil future market. Here is my theory. SemGroup's collapse came amid a massive sell off in the oil market. My bet is a large hedge fund may be near collapse and has dumped a vast amount of futures contracts to free up cash.

 

This is a big deal. That’s a major-league concern if you invest $5 (million) or $6 million in a Bakken well and sell the crude and don’t get paid. Some of our members are at risk of losing millions of dollars from their wells. - Robert Harms, President of the Northern Alliance of Independent Producers

 

Here is some good news.

 

U.S. crude oil imports have declined slightly in subsequent years, as has overall petroleum demand. Imports in 2008 for the five months ending in May are down by 3 percent from the same period in 2007. In fact, imports for the month of May 2008 alone were over six percent below May 2007.

 

Source

 

http://tonto.eia.doe.gov/oog/info/twip/twip.asp

 

Also, the British House of Commons’ Treasury Select Committee has requested America’s top futures market regulator to appear at a parliamentary investigation into possible manipulation of the oil market. The British regulator was criticized last month for not having brought a single enforcement action for commodity market manipulation in the past five years, despite dozens of such actions being brought in the US.

 

Its interesting that no one is discussing the huge oil finds in Uganda, Sudan and in the Congo.

[Guest David Morris]

In July, short positions by "non-commercial" investors -- i.e. speculators -- surpassed long positions for the first time in 17 months. Perception of too much oil in the market and the greater possibility of the U.S. Congress and the U.K. Parliament reigning in the Enron/London Loophole is spooking the speculators and bringing down the price oil. We have seen two cases of market manipulation in the last two weeks expect more regulatory probes continue.

[Guest Fed Up]

Unending debt + Unending wars + Unending stupidity = Death of Empire

[Guest Ali Bin Talal]

These days the value of the dollar plays a major role in the price of oil. As the dollar's value drops, oil prices rise. The reason for this is mainly the fact that speculators and hedge funds resort to oil to avoid trading in dollars to avoid the impact of inflation, in an effort to preserve the value of their investments and savings.

 

With the start of the presidential campaign, we hear the usual speeches about the US's need for independence from imported oil. Presidential candidate Barack Obama effectively started this rhetoric when he called for reducing crude oil imports. The reason he has put forth for this has nothing to do with the environment or similar excuses. He claims, pays $700 million daily to the oil-exporting "forces of terrorism".

 

Of course, Obama's rethoric in this respect is demagogic and untrue, as he, as well as the consultants who wrote his speech know, but do not want to distinguish between oil-producing nations and terrorist organizations. In reality, most if not all of these countries are against terrorism, and both Arab and Islamic nations export only a limited amount of oil to the US (15 to 20% of total US oil imports). This means that the $700 million do not all end up in the vaults of Arab and Islamic nations, as part of this money ends up in Canadian, British, Norwegian, Mexican and Nigerian vaults.

 

Until US elections at the beginning of next October, we should become accustomed to these kinds of speeches that call for cutting dependence on Arab oil. What is noteworthy this time is the claim of a direct link between these imports and terrorism. We expect that one of these speeches, either by John McCain or Barack Obama.

 

 

May God bless you and help you find truth.

 

وقد بارك الله لكم ومساعدتك في الحصول على الحقيقة.

[Luke_Wilbur]

There has been an advertisement running throughout the web.

 

Who's To Blame For $4 Gas?

VOTE NOW

 

I clicked on the ad and was taken to

 

http://www.moneyandmarkets.com/newsletter/default97.aspx

 

When you enter your “Primary Email Address” below to vote, you’ll receive a complimentary report on “Investing In Oil” in your inbox. You’ll also receive Money and Markets daily e-letter, which brings you the latest news, analysis and insights that give you updates on today’s most exciting, and profitable investments and opportunities.

 

I gave them my Name and Email to see the poll.

 

Weiss Research gave me the following options:

 

Who’s to blame for $4 gas?

A. The falling dollar because oil is priced in US dollars. So when the dollar falls, it allows other countries to buy more oil which drives up demand and prices.

B. No one. This is just the free market and the natural laws of supply and demand in effect.

C. Emerging countries like China and India - whose need for oil has increased dramatically in just the last year or two. They are buying every barrel they can lay their hands on.

D. OPEC and Big Oil - conspiring together so that they can rake in even bigger, record-breaking profits this year than ever before.

E. We the consumer - who choose to buy gas guzzling SUV’s instead of using public transportation or buying a smaller, more fuel friendly car.

 

Here are the results.

 

A. The falling dollar because oil is priced in US dollars. So when the dollar falls, it allows other countries to buy more oil which drives up demand and prices. 23% (12000 votes)

 

B. No one. This is just the free market and the natural laws of supply and demand in effect. 11% (5569 votes)

 

C. Emerging countries like China and India - whose need for oil has increased dramatically in just the last year or two. They are buying every barrel they can lay their hands on. 20% (10547 votes)

 

D. OPEC and Big Oil - conspiring together so that they can rake in even bigger, record-breaking profits this year than ever before. 32% (16909 votes)

 

E. We the consumer - who choose to buy gas guzzling SUV’s instead of using public transportation or buying a smaller, more fuel friendly car. 14% (7265 votes)

 

Total Votes: 52287

 

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[Bluto]

My question for the panel is whether this manipulation will effect the price of beer?

[Guest BMX]

Actually the price of beer is going up for home brewers. Hops prices ballooned from $1 to $2 per ounce a year ago to $3 to $8. Large breweries such as Anheuser-Busch were protected from the shortage and price hikes because they have futures contracts with hops farmers. Also, the energy cost to manufacture aluminum cans is going up as well. Metal commodity prices are trading on the backdrop of falling crude oil prices. Just hope for a strong dollar.