It’s been awhile since we chatted about commodities trading, and the bald-faced manipulation of energy commodities by those in position to profit the most from any inexplicable rise in prices.
But, our pals at Goldman Sachs have given us a reason to bring the subject up again, courtesy of this MSNBC story.
Seems that they’re doing their best to prop up the sagging price of natural gas, with a baseless forecast that natural gas prices could triple this winter. Sort of the “Meet my wife, Morgan Fairchild. Yeah, that’s the ticket” shtick, commodities-style.
Read very carefully the recap of natural gas market fundamentals that follows in the story: There’s NO reason whatsoever that the price should rise. A bit.
Except, of course, for commodities traders, investment houses and financial voodoo – including a figurative yell of “fire” in the trading theater.
Update: An energy icon says oil and natural gas prices are headed down.
4 Comments
I hear tell Pakistan has it right. As I understand it, they execute commodity speculators.
A little extreme.
However, President Obama has pledged to end the vulnerability of energy prices to manipulation. That hasn’t happened yet.
Mr. Wilson, thanks for monitoring macro issues! The struggle seems to be between math and animal spirits. So which will win?
Are informed consumers losing ground to speculators again?
Bill… I love your insights! You are so right. Where is Obama’s promised help on this one?