Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Desperate times when they ask someone who actually knows something about the problem.  Is Leo Drollas a willing participant?  Shell vs. BP?

To the extent that speculative money has made geared forward purchases of oil then the market is exposed to  a rapid downturn.

This is another reason for concern about pension fund investment in commodities futures.  Yet I have been reading about it in Barons and elsewhere for five or six months.  I worry that this is partly pressure to show returns on the portfolio.  But even if it is a good bet, it seems to be a bad idea from a regulatory policy viewpoint.

I don't believe that speculation is driving the overall trend in prices, but I don't see how it can help.  I seriously doubt it would be happening absent a perception of a long term shortfall.  A put is a relatively cheap "investment."  Managers who know what their doing, (NOT ME), may have  already made more money on volatility they would lose by having to sell their puts or let them expire unexercised.

"It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Sun Jul 13th, 2008 at 11:47:02 AM EST
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