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  1. #1
    Atomic Punk
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    12.11.17 @ 04:37 PM
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    Default Lone trader caused 100 dollar price for oil

    NEW YORK (AFP) - A lone trader out to win a little fame made the purchase that took oil prices to the historic 100 dollars a barrel level this week but he lost 600 dollars on the deal, analysts said.

    The trader has been named by US and British media as Richard Arens who runs a one man oil brokerage, ABS.

    "The magic figure was hit apparently on the back of a single trade, rumoured to be a local intent on fame," Sucden analysts wrote in a commentary Thursday on the record breaking deal.

    Arens offered 100,000 dollars on the New York market on Wednesday for 1,000 barrels of oil, producing the much talked of 100 dollars per barrel which sparked anguish across the financial markets.

    He later sold on the contract for slightly below 100 dollars, taking a 600 dollar loss.

    "It was just for the form; he wanted to be the first in the world to buy oil at 100 dollars," said Antoine Heff, an analyst at NewEdge.

    The new price record came as a shock to the markets although many had been saying 100 dollars was inevitable at some point given strong demand and supply constraints.

    Oil slipped back slightly but hit 100 dollars again on Thursday.

    On Friday, profit-taking pushed the price back again, with quotes in late Asian trade of 99.23 dollars for New York's main contract, light sweet crude for delivery in February.

    The initial spike to 100 resulted from "really just one trade which was like a stunt," but more trades pushed it above 100 dollars again on Thursday, said Victor Shum, of international energy consultancy Purvin and Gertz in Singapore.

    "We have eased off from the 100 dollars level primarily because of some profit taking," Shum said.

    Analysts say rising oil demand has outstripped growth in supply. They point to booming Asian economies like China and India and insufficient investment by oil exporters, which has led to a decline in spare production capacity.

    Geopolitical tensions and new buying interest from speculative investors like investment funds are also behind the quadrupling in the oil price over the last five years, analysts say.

    A weakening US dollar, which makes oil more affordable for buyers in stronger currencies, is another factor cited for the rise in prices.
    "Watch what people are cynical about, and one can often discover what they lack. -- Gen. George S. Patton

  2. #2
    Atomic Punk
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    am I the only one who is concerned by the idea that the price of such commodities can be so easily and arbitrarily affected?

  3. #3
    Atomic Punk
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    12.11.17 @ 04:37 PM
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    Quote Originally Posted by broken9500 View Post
    am I the only one who is concerned by the idea that the price of such commodities can be so easily and arbitrarily affected?
    and its immediate affect thereafter the "stock market" economy...
    "Watch what people are cynical about, and one can often discover what they lack. -- Gen. George S. Patton

  4. #4
    Baluchitherium loveevhsince79's Avatar
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    10.23.15 @ 04:49 PM
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    Quote Originally Posted by broken9500 View Post
    am I the only one who is concerned by the idea that the price of such commodities can be so easily and arbitrarily affected?
    The whole stock market is run on emotion and perception. It's why every time there is a report, or an event, the stock market responds.

  5. #5
    Atomic Punk
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    07.24.11 @ 04:36 PM
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    Quote Originally Posted by loveevhsince79 View Post
    The whole stock market is run on emotion and perception. It's why every time there is a report, or an event, the stock market responds.
    yeah I get that. That's precisely what I'm talking about. Somehow I just think the value of a given currency or the cost of something like oil shouldn't be susceptible to people's moods or whether they got laid the night before or whether they have a hair up their ass about something...

  6. #6
    Atomic Punk bsbll4's Avatar
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    The guy offered $100 up from $99.23. The headline is a little misleading. It makes it seem like the price of oil could be $60 if it weren't for this one guy. All that happened was the guy outpaced everyone so he could be famous. The price is not artificially high or anything. The price should be about $99 (because that is what everyone else is offering).

    So no, one guy cannot make that big of a difference...unless he owns a ton of stock to begin with and decides to sell.
    CNN may think my opinion matters, but you shouldn't.

  7. #7
    Hot For Teacher 8amtill606's Avatar
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    Quote Originally Posted by broken9500 View Post
    am I the only one who is concerned by the idea that the price of such commodities can be so easily and arbitrarily affected?
    Not at all.

  8. #8
    Atomic Punk
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    07.24.11 @ 04:36 PM
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    Quote Originally Posted by bsbll4 View Post
    The guy offered $100 up from $99.23. The headline is a little misleading. It makes it seem like the price of oil could be $60 if it weren't for this one guy. All that happened was the guy outpaced everyone so he could be famous. The price is not artificially high or anything. The price should be about $99 (because that is what everyone else is offering).

    So no, one guy cannot make that big of a difference...unless he owns a ton of stock to begin with and decides to sell.
    Obviously this guy was just a tool who saw a chance to make a minor headline...he's besides the point.

    you don't think the price of oil is artificially high?

  9. #9
    Atomic Punk bsbll4's Avatar
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    Not because of the market, but because of the supply being artificially dampened. That's where the problem lies, not Wall Street.
    CNN may think my opinion matters, but you shouldn't.

  10. #10
    Atomic Punk chefcraig's Avatar
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    Louis Winthorpe III: Think big, think positive, never show any sign of weakness. Always go for the throat. Buy low, sell high. Fear? That's the other guy's problem. Nothing you have ever experienced will prepare you for the unlimited carnage you are about to witness. Superbowl, World Series - they don't know what pressure is. In this building, it's either kill or be killed. You make no friends in the pits and you take no prisoners. One moment you're up half a mil in soybeans and the next, boom, your kids don't go to college and they've repossessed your Bentley. Are you with me?
    Billy Ray Valentine: Yeah, we got to kill the mother - we got to kill 'em!

    "The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore, all progress depends on the unreasonable man."
    George Bernard Shaw

  11. #11
    Good Enough vanzefflin's Avatar
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    10.26.17 @ 04:07 PM
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    So,the guy is an attention whore. Maybe he should sign up over here at the links. He'd fit right in.
    EDDIE IS THE ULTIMATE ROCK DOG!

  12. #12
    Sinner's Swing!
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    Quote Originally Posted by chefcraig View Post
    Louis Winthorpe III: Think big, think positive, never show any sign of weakness. Always go for the throat. Buy low, sell high. Fear? That's the other guy's problem. Nothing you have ever experienced will prepare you for the unlimited carnage you are about to witness. Superbowl, World Series - they don't know what pressure is. In this building, it's either kill or be killed. You make no friends in the pits and you take no prisoners. One moment you're up half a mil in soybeans and the next, boom, your kids don't go to college and they've repossessed your Bentley. Are you with me?
    Billy Ray Valentine: Yeah, we got to kill the mother - we got to kill 'em!

    "Where's Beeks? Where in the hell is Beeks?"

  13. #13
    Atomic Punk chefcraig's Avatar
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    Quote Originally Posted by looper_guy View Post
    "Where's Beeks? Where in the hell is Beeks?"
    "Yeah, I forgot all about that guy....

    One adult gorilla.
    But there's two of 'em.
    Aw, can't ya see...they're in love..."

    "The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore, all progress depends on the unreasonable man."
    George Bernard Shaw

  14. #14
    Forum Frontman It's Mike's Avatar
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    Quote Originally Posted by broken9500 View Post
    am I the only one who is concerned by the idea that the price of such commodities can be so easily and arbitrarily affected?
    you shouldn't be that worried broken, this is pretty well watched by the markets. Also just because something is sold 1 time at a certain price doesn't really impact the market. If I was selling my 2000 Honda Civic and i wanted 7,000 for it. If you offered me 50,000 just because you thought I was a nice guy that wouldn't impact the value of all the other used Civics being sold.

    The only real concern with this type of thing is market manipulation and many fund traders have lost their jobs for things like this. Buying a small number of shares for far more than they're worth just to make their books look better at the close of an accounting period.

  15. #15
    Atomic Punk
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    Quote Originally Posted by it's me View Post
    you shouldn't be that worried broken, this is pretty well watched by the markets. Also just because something is sold 1 time at a certain price doesn't really impact the market. If I was selling my 2000 Honda Civic and i wanted 7,000 for it. If you offered me 50,000 just because you thought I was a nice guy that wouldn't impact the value of all the other used Civics being sold.

    The only real concern with this type of thing is market manipulation and many fund traders have lost their jobs for things like this. Buying a small number of shares for far more than they're worth just to make their books look better at the close of an accounting period.
    i'm not concerned by the one guy and your honda civic analogy is a very good one...probably the best analogy anyone has used on here for any reason in a long long time. I completely agree with you on that. What concerns me is (and maybe this concern is fueled by my less than PHD level of knowledge concerning the economics of stock markets and global economies) that it seems that without a concrete standard to measure the value of our currency and the fact that the stock market can be affected by moods, thoughts, hopes, confidence, lack of confidence and other such factors, that our economy is nothing more than a deck of cards that in order to continue its ability to stand on its own, we must continue building on it but building the house of cards makes it more fragile, but if we don't keep building it will definitely fall down but if we keep building it may very well fall down but at least it won't fall down right now. does that make sense?

 

 

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