wrest control from the intermediaries now applying a "super rent" to the market.
You've yet to support your allegation that the intermediaries make anything from a high market that stays high. Volatility pays the specs. The absolute level change accrues to the owners of the crude = OPEC, Russia, Mexico, Norway + oil producing companies.
The key point is that the "free float" of tradable oil which actually sets the market price is not that great.
there is no reason the rest of the markets price off of WTI or Brent other than history and the chicken shit nature of most of the players that refuse to accept responsibility for doing their business fixed price. You'd do more good by advocating that pricing off of Platts/Argus/OPIS/EFP's be banned.
You've yet to support your allegation that the intermediaries make anything from a high market that stays high.
Straw man, HiD.
As you say, it's producers who make money from high markets that stay high, and I have never said anything else.
Market price moves and volatility are a different issue. Intermediaries make and lose money from these in different ways depending on what their role as intermediaries actually is.
HiD:
here is no reason the rest of the markets price off of WTI or Brent other than history and the chicken shit nature of most of the players that refuse to accept responsibility for doing their business fixed price.
An interesting behavioural perspective on why the market is structured the way it is, probably good for a Diary.
You'd do more good by advocating that pricing off of Platts/Argus/OPIS/EFP's be banned.
Interesting idea: get rid of market benchmarks altogether?
As you are a former trader I think you are well qualified to write a Diary setting out how the market actually should be structured.
I'd be particularly interested in your proposals in respect of market regulation
"Any economic unit can emit money. The serious problem is to get it accepted" Hyman Minsky
