The global oil scam

Oldest

Best Reply

Author

Message

CEO

Joined: 17 May 2007

Posts: 2998

Followers: 48

Kudos [?]: 390 [0], given: 210

The global oil scam [#permalink]

15 Nov 2009, 10:37

http://seekingalpha.com/article/172797- ... ostpopular

Fantastic article on seekingalpha :
"Goldman Sachs (GS), Morgan Stanley (MS), BP (BP), Total (TOT), Shell (RDS.A), Deutsche Bank (DB) and Societe Generale (SCGLY.PK) founded the Intercontinental Exchange (ICE) in 2000. ICE is an online commodities and futures marketplace. It is outside the US and operates free from the constraints of US laws. The exchange was set up to facilitate "dark pool" trading in the commodities markets. Billions of dollars are being placed on oil futures contracts at the ICE and the beauty of this scam is that they NEVER take delivery, per se. They just ratchet up the price with leveraged speculation using your TARP money. This year alone they ratcheted up the global cost of oil from $40 to $80 per barrel."

Kaplan Promo Code

Knewton GMAT Discount Codes

Manhattan GMAT Discount Codes

Current Student

Joined: 05 Nov 2009

Posts: 171

Location: Toronto

Schools: Oxford

Followers: 6

Kudos [?]: 65 [0], given: 5

Re: The global oil scam [#permalink]

01 Dec 2009, 12:46

thanks for the interesting article. worth the read.

i didn't know the trade volume was so high on the ICE...while they're not artifically manipulating the prices directly, they are indirectly sending pricing signals to the market, which is still pretty shady...
_________________

Oxford Round 1 - interview invite 10/30/09, admit 12/11/09, ATTENDING 2010

My Road to Oxford and INSEAD http://gmatclub.com/forum/my-road-to-oxford-sbs-and-insead-89413.html#p676253

Manager

Joined: 07 Nov 2009

Posts: 160

Location: Milan, Italy

Schools: Booth (admitted R1), NYU (interview Mar 4), UT (withdrawn), Rice (admitted R2) plus dings at HBS, Stanford, Wharton and CBS

WE 1: Oil and gas

Followers: 4

Kudos [?]: 27 [0], given: 6

Re: The global oil scam [#permalink]

09 Feb 2010, 08:43

I agree with drsatisfaction - the author makes a pretty big leap to claim that the oil price doubled on the back of this, although it doesn't sound like best practice to me either. Anyway I read offshore oil storage was decreasing fairly rapidly as of not long ago - can't remember where though, unfortunately.
_________________

If I said something intelligent, it was probably by accident. But click "kudos" anyway - it will make me happy.

Joined: 11 Dec 2006

Posts: 1429

Location: New York, NY

Schools: NYU Stern 2009

Followers: 34

Kudos [?]: 216 [0], given: 6

Re: The global oil scam [#permalink]

09 Jul 2010, 08:09

Why on earth would you take delivery? If you have a consignment to be delivered with a future price fix, why the hell would you want to take delivery in zone 4?

This ignores that the vast majority of people never take delivery in forwards markets for anything. Corn, Coffee, Orange Juice, Pork Bellys - it is a hedge, not a fricking order and delivery system.
_________________

Find out what's new at GMAT Club - latest features and updates

Intern

Joined: 06 Sep 2011

Posts: 6

Followers: 3

Kudos [?]: 0 [0], given: 0

Re: The global oil scam [#permalink]

16 Sep 2011, 00:06

thanks for the interesting article. worth the read.

Re: The global oil scam [#permalink] 16 Sep 2011, 00:06

		Similar topics	Author	Replies	Last post
Similar Topics:		Kaplan a SCAM!	GMATCUBS21	4	11 May 2004, 15:37
		oil prices	singh_satya	2	25 Jun 2004, 19:50
		Global MBA	yenkat2009	1	22 Aug 2009, 12:48
	1	Just got a scam on this forum.	Stoneface	13	24 Nov 2011, 09:19
		EMBA-Global	baltimore86	1	28 Mar 2013, 04:13

The global oil scam

Main navigation

GMAT Resources

Partners

MBA Resources

GMAT ® is a registered trademark of the Graduate Management Admission Council ® (GMAC ®). GMAT Club's website has not been reviewed or endorsed by GMAC.

GMAT Courses

Admissions Consulting

The global oil scam

The global oil scam

Main navigation

GMAT Resources

Partners

MBA Resources