LIBOR in Context: Oil Market Manipulation Is Far Worse

HJ: And the dominoes continue to fall.  These articles are exposing what many of us already know– that all markets are heavily manipulated.  When you have interests as powerful and wealthy as the oil lobby, the industry is just ripe for corrupt practices.  Furthermore, no one truly knows how much oil is available on the planet and this done purposefully, as that knowledge (if it is truly known) is a state secret that could have major implications for oil prices if widely known.  Ignorance keeps people under control. – Truth

Forget Libor-gate, Oil Market Manipulation Is Far Worse

Since the Global Community all the sudden seems to be preoccupied with Market manipulation even though the authorities knew it was a problem for over 5 years with Libor Rate Fixing. It is high time authorities look at the Crude Oil market which has been manipulated for the last decade and all the sophisticated participants know it is rigged or artificially higher than the fundamentals of the economy dictate. Consumers are paying an easy $35 dollars per barrel over what they would otherwise dole out for a barrel of oil, if fund managers didn`t use the benchmark futures contracts as their own personal ATMs.

Just a month ago Crude Oil WTI was $78 a barrel and today it is $93. Do you think the fundamentals changed one bit to merit this price swing? Nope! Supply levels are all at record highs around the world. Is it Iran? Please!! It is all about the money flows, nobody takes delivery anymore. Assets have become one big correlated risk trade. Risk On, Risk Off. If the Dow is up a hundred, you can bet crude is up at least a dollar! It has nothing to do with fundamentals, inventory levels, supply disruptions, etc. It is all about fund flows.

So how this affects the average Joe is that if Wall Street is having a good day, i.e., fund flows are going in, then Average Joe is having a bad day and paying more for Gas. Yes, it is that simple. A good day for Wall Street is a bad day for consumers at the pump these days as Capital flows into one big Asset Trade: Risk On!
Read the rest of the article here: EconMatters
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