Dearest Exxon Mobil

[Denny]

You've got to be fucking kidding me....I can position over $100k in physical for a mere $6750?

That's not even close to the worst ones either.

[Sean88gt]

For new WTi contracts it is $6,750 right now, it is going to $8,438.

It is ridiculous to me that you can control a thousand barrels of oil with only having that kind of skin in the game.

You've got to be fucking kidding me....I can position over $100k in physical for a mere $6750?

[Denny]

For new WTi contracts it is $6,750 right now, it is going to $8,438.

It is ridiculous to me that you can control a thousand barrels of oil with only having that kind of skin in the game.

Ahhh... that's baby shit!

[Denny]

Can you explain this in lamens terms?

Basically, some investors borrow money from a broker to purchase stock. They only have to put up a certain percentage of the total cost of what they are trying to buy for a future delivery of that stock or commodity. If that stock or commodity takes off, they can just pay the original difference and take delivery of that stock or commodity OR they can just take the profit (minus what they owe) from the initial purchase when that contract's time is up.

Now if it tanks, they would still owe the initial purchase price. Then comes the margin call... you basically have to get them the money right away or they start freezing all of your other holdings and liquidate your ass.

This is a problem in the commodities market because big investors are using major purchases to influence the price without having to use all of their money. Most of the time, those contracts can't be covered with the commodity that backs it up (cough*silver*cough). So now we have a lot more of that commodity being traded than even exists.

[FATHERFORD]

Pretty interesting read.

http://www.exxonmobilperspectives.co...o-think-about/

Peope just see "big numbers" and think the companies are out fucking everyone... When in reality if their business model was used in ANY other industry, the business would fail.

[Broncojohnny]

Agreed. What is the rate currently?

For new WTi contracts it is $6,750 right now, it is going to $8,438.

It is ridiculous to me that you can control a thousand barrels of oil with only having that kind of skin in the game.

[8mpg]

They claim that only 3% of that profit was based on gasoline.

[ImayBblack]

XTO just got bought out by Exxonmobile. They are hiring for a shit load of positions.

I feel ya though. You would think since oil and gas companies are profiting from these prices they would at least give their employees a pay raise, but nope! I have not gotten jack shit.

[mustangguy289]

CME is increasing margins on oil contracts by ~25% today after the close. I guess we are going to find out how much speculation has to do with the price.

I think they should at least double the margin requirement, maybe even triple it.

Can you explain this in lamens terms?

[Denny]

CME is increasing margins on oil contracts by ~25% today after the close. I guess we are going to find out how much speculation has to do with the price.

I think they should at least double the margin requirement, maybe even triple it.

About time. It's time to kill these margins on commodities. I was shaking my head when all these silver people were bitching about the margin raises, yet bitch about the market manipulation.

The raises are needed to kill the manipulation, fools! LMAO! Just throw a put out here and there whenever the ass fucking begins and all is well.

/high fives himself

[Sean88gt]

CME is increasing margins on oil contracts by ~25% today after the close. I guess we are going to find out how much speculation has to do with the price.

I think they should at least double the margin requirement, maybe even triple it.

Agreed. What is the rate currently?

[Broncojohnny]

Give it to $150/bbl and I think you'll see cries for a change that require buyers to take delivery. I would LOL hardily if a speculator bought played 50,000,000 barrels and the trucks started showing up.

I also think they need to do away with buying commodities on margin.

CME is increasing margins on oil contracts by ~25% today after the close. I guess we are going to find out how much speculation has to do with the price.

I think they should at least double the margin requirement, maybe even triple it.

[Hobie]

Give it to $150/bbl and I think you'll see cries for a change that require buyers to take delivery. I would LOL hardily if a speculator bought played 50,000,000 barrels and the trucks started showing up.

I also think they need to do away with buying commodities on margin.

Wasn't it Exxon's CEO that said something about, "Anyone can buy 1,000,000 barrels of futures and warehouse them in your desk's top droor." ???

[Hobie]

Glad to see you've changed your ways.

For some reason that one response in that one thread stuck with me. I guess it's the thinking that you don't fuck with another man's car.

Don't try to take someone's life with your car and it won't get fucked with. I think that's a small price to pay for threatening another man's life.

[Sean88gt]

I agree with you there. Speculation should be a crime.

Give it to $150/bbl and I think you'll see cries for a change that require buyers to take delivery. I would LOL hardily if a speculator bought played 50,000,000 barrels and the trucks started showing up.

I also think they need to do away with buying commodities on margin.