Dearest Exxon Mobil

[Sean88gt]

CME is increasing margins on oil contracts by ~25% today after the close. I guess we are going to find out how much speculation has to do with the price.

I think they should at least double the margin requirement, maybe even triple it.

Agreed. What is the rate currently?

[Denny]

CME is increasing margins on oil contracts by ~25% today after the close. I guess we are going to find out how much speculation has to do with the price.

I think they should at least double the margin requirement, maybe even triple it.

About time. It's time to kill these margins on commodities. I was shaking my head when all these silver people were bitching about the margin raises, yet bitch about the market manipulation.

The raises are needed to kill the manipulation, fools! LMAO! Just throw a put out here and there whenever the ass fucking begins and all is well.

/high fives himself

[mustangguy289]

CME is increasing margins on oil contracts by ~25% today after the close. I guess we are going to find out how much speculation has to do with the price.

I think they should at least double the margin requirement, maybe even triple it.

Can you explain this in lamens terms?

[ImayBblack]

XTO just got bought out by Exxonmobile. They are hiring for a shit load of positions.

I feel ya though. You would think since oil and gas companies are profiting from these prices they would at least give their employees a pay raise, but nope! I have not gotten jack shit.

[8mpg]

They claim that only 3% of that profit was based on gasoline.

[Broncojohnny]

Agreed. What is the rate currently?

For new WTi contracts it is $6,750 right now, it is going to $8,438.

It is ridiculous to me that you can control a thousand barrels of oil with only having that kind of skin in the game.

[FATHERFORD]

Pretty interesting read.

http://www.exxonmobilperspectives.co...o-think-about/

Peope just see "big numbers" and think the companies are out fucking everyone... When in reality if their business model was used in ANY other industry, the business would fail.

[Denny]

Can you explain this in lamens terms?

Basically, some investors borrow money from a broker to purchase stock. They only have to put up a certain percentage of the total cost of what they are trying to buy for a future delivery of that stock or commodity. If that stock or commodity takes off, they can just pay the original difference and take delivery of that stock or commodity OR they can just take the profit (minus what they owe) from the initial purchase when that contract's time is up.

Now if it tanks, they would still owe the initial purchase price. Then comes the margin call... you basically have to get them the money right away or they start freezing all of your other holdings and liquidate your ass.

This is a problem in the commodities market because big investors are using major purchases to influence the price without having to use all of their money. Most of the time, those contracts can't be covered with the commodity that backs it up (cough*silver*cough). So now we have a lot more of that commodity being traded than even exists.

[Denny]

For new WTi contracts it is $6,750 right now, it is going to $8,438.

It is ridiculous to me that you can control a thousand barrels of oil with only having that kind of skin in the game.

Ahhh... that's baby shit!

[Sean88gt]

For new WTi contracts it is $6,750 right now, it is going to $8,438.

It is ridiculous to me that you can control a thousand barrels of oil with only having that kind of skin in the game.

You've got to be fucking kidding me....I can position over $100k in physical for a mere $6750?

[Denny]

You've got to be fucking kidding me....I can position over $100k in physical for a mere $6750?

That's not even close to the worst ones either.

[Broncojohnny]

You've got to be fucking kidding me....I can position over $100k in physical for a mere $6750?

Yep, which is absurd. You can only leverage ~60% in equities.

[Sean88gt]

The amount you can leverage needs to be directly tied to the amount of product use by the end users (corn, oil, etc).

[runin90lx]

XTO just got bought out by Exxonmobile. They are hiring for a shit load of positions.

What??? Exxon purchased XTO about a year ago toget Exxon into the shale gas plays.

[Broncojohnny]

What??? Exxon purchased XTO about a year ago toget Exxon into the shale gas plays.

And then sent all their money to us shareholders. lol