Russia: Gov’t Administration of Oil Markets “Impossible”

Why is it Russia, of all nation’s gets this and we seemingly don’t?

Note: the government defines “speculators” as “investors who do not use or produce commodities but are primarily interested in betting on prices”. In other words…..just about everyone…

Here is CNBC on the subject:

Now, watch the following video. Trader Randy Rothberg talks about the fall he sees coming in oil (USO).

Notice his arguments. Gas demand and Nigerian political risk. Those two variable are huge in the bigger picture for oil (USO) prices. Depending on your view of those two, you will either be a buyer or seller of oil at these prices. It isn’t “speculation” in the sense it is used but a purchase or sale decision based on future expectations.

On another note. Have you notice that when either gas/oil prices rise or the stock market falls it is due to “speculators” but when oil/gas (UNG) prices fall or the stock market rises (two things gov’t wants to happen) it is due to “investor sentiment”?

Be very careful when policy is being pushed simply because we do not like the outcome. It should be the process that is important..

Disclosure (“none” means no position):Long UNG, none