Oil Futures Trading on September 22, 2008 – WTF?

http://www.ft.com/cms/s/0/a42969f2-88e1-11dd-a179-0000779fd18c.html

The interest rate thankfully wasn’t slashed last week by the Fed. Demand of oil is down. Supply was only slightly cut the last time OPEC met. But, the price rose $25 a barrel yesterday. What the fck is going on? I’m not joking – there needs to be an investigation into market manipulation.

You’ve probably been forced out of your $95 (or so) short position by yesterday’s rise in price. If you weren’t, stay in the position – this price spike on 9/22 is unexplainable and should drop soon enough though I guess you can never tell.

The only thing I can imagine causing the recent oil price increase is the fact that nobody is trading in a stock market that can’t be shorted. Commodity and oil prices may be extra volatile for another 8-9 days – stock market trading will remain meaningless until the short ban on financial shares ends October 2nd. On that note, could October 3rd be known as Black Friday since traders are dying to get back into the market and short the bejesus out of worthless financial shares trading too high like Goldman Sachs?

Update: As of 9/23 at 12 pm CDT, the price slid back to a more realistic number of $105 a barrel during trading today.  Somebody start the above mentioned investigation IMMEDIATELY.

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