InvestorsHub Logo
Boards
News
Market Data
Markets
Discover
Discover
Subscribe Login/Register
S&P 500
5,469.30
(
0.39%
)
US TECH 100
19,181.60
(
1.18%
)
Dow Jones
39,112.16
(
-0.76%
)
Brent Oil
84.21
(
-1.24%
)
Bitcoin
61,907.59
(
2.73%
)
Post# of 47133
Next 10
Reply Private New
Public Reply Private Reply New Post
Keep Last Read
Replies (2) Keep Next 10 Report Keyboard Shortcuts
Replies (2) Next 10 Prev Next

ls7550

Send PM Follow Ignore
Followers 15
Posts 2723
Boards Moderated 2
Alias Born 01/05/2004

ls7550

Re: Toofuzzy post# 40191

Tuesday, 01/12/2016 6:54:53 PM

Tuesday, January 12, 2016 6:54:53 PM

Post# of 47133

If I was Saudi Arabia I would have sold futures as far out as I could.
Then when I started pumping lots of oil I could buy the futures back cheap.
Just before I start cutting production I could buy even more futures.
When I start cutting production and prices rise I could then sell those futures for a lot more.

BUT ! Sovereign Wealth Funds are restricted (Volcker Rule) from such short term hedging/trading, other than for a relatively small proportion (something like less than 3% I believe). Otherwise there'd be too much manipulation in the likes of what you outlined - that would stall the market(s). The likes of GAPP is voluntary, but if any one member started abusing the market(s) the others would likely curtail access/banking to the culprits detriment.

Public Reply Private Reply New Post
Keep Last Read
Replies (2) Keep Last Read Next 10 Report Keyboard Shortcuts
Replies (2) Next 10 Prev Next

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.

Sign Up