by Chris Black
I just stumbled upon this article and I was flabbergasted by the sheer ignorance on display.
Many politicians are quick to blame oil companies, but the market is much more complicated than that.t.co/JnrzaYgkXD
— OilPrice.com (@OilandEnergy) July 6, 2022
So you offer nothing other than it isn’t Exxon’s fault?
There is absolutely no mention of Wall Street and high frequency trading setting the price in the article.
No mention of the absolute fact that over 99% of daily oil volume is traded by computers between the major commodity trading banks.
Oil traded negative because Goldman, Virtu, and the other majors got caught with their pants down and were going to run out of offshore storage facilities.
The contracts had to go negative in a desperate attempt to lower that inventory. Within weeks, Cushing was going to overflow because there was nowhere left to ship oil.
Do you remember all the stories of Goldman buying oil tankers to store oil offshore, as to remove it from global inventory reports?
I remember that, but I don’t write stupid shit for “prestigious publications”.
The price of oil and gas is as rigged as the price of gold on the London Exchange. But you are right to a certain point that Exxon has nothing to do with it.
However, record crack spreads say that they could do something about it.
The problem is that like a barrel of oil, the prices for refined products are also set by Wall Street.
That is how we get $3.85 wholesale gas with oil at $100, instead of the sub $2 it used to be.