http://timworstall.com/2008/08/03/bleedin-ell/ It is all obvious or trivial except... Sat, 11 Feb 2012 18:45:24 +0000 hourly 1 http://wordpress.org/?v=3.2.1 http://timworstall.com/2008/08/03/bleedin-ell/comment-page-1/#comment-19864 em butler Sun, 03 Aug 2008 15:46:52 +0000 http://timworstall.com/2008/08/03/bleedin-ell/#comment-19864 a zero sum game?? depends on who and what you are counting... if you buy a contract for 10 dollars a barrel and later sell it for 100 dollars, you made 90....and if your buyer sells at 130 ,he made 40 the total non zero amount is an increase of 130 bucks unless you want to count the cost to the final buyer ,who actaully bought a product.. people certainly get rich on that zero sum game.. a zero sum game?? depends on who and what you are counting…
if you buy a contract for 10 dollars a barrel and later sell it for 100 dollars, you made 90….and if your buyer sells at 130 ,he made 40
the total non zero amount is an increase of 130 bucks unless you want to count the cost to the final buyer ,who actaully bought a product..
people certainly get rich on that zero sum game..

]]> http://timworstall.com/2008/08/03/bleedin-ell/comment-page-1/#comment-19859 Georges Sun, 03 Aug 2008 12:18:37 +0000 http://timworstall.com/2008/08/03/bleedin-ell/#comment-19859 Is the 70bn USD collected from Big Oil by various governments of the world in just the 2nd quarter not good enough a start? Is the 70bn USD collected from Big Oil by various governments of the world in just the 2nd quarter not good enough a start?

]]> http://timworstall.com/2008/08/03/bleedin-ell/comment-page-1/#comment-19858 Matthew Sun, 03 Aug 2008 12:13:12 +0000 http://timworstall.com/2008/08/03/bleedin-ell/#comment-19858 As you know there is a major debate on what influence futures contracts can have on spot prices. To the extent that $80bn or so has been invested in long futures by commodity indices, another $80bn of short futures has have to be found. If those going short do not wis to be short (for speculative reaons), or do not have a natural offsetting long, then they might have had to go long physically. Where those stocks are though is anyone's guess - people have suggested in oil tankers on the ocean, or (John Redwood's idea I think) car fuel tanks (but the numbers don't stack up in this idea). As you know there is a major debate on what influence futures contracts can have on spot prices. To the extent that $80bn or so has been invested in long futures by commodity indices, another $80bn of short futures has have to be found. If those going short do not wis to be short (for speculative reaons), or do not have a natural offsetting long, then they might have had to go long physically. Where those stocks are though is anyone’s guess – people have suggested in oil tankers on the ocean, or (John Redwood’s idea I think) car fuel tanks (but the numbers don’t stack up in this idea).

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