BAK - Investing Message Board

5/6/2012 1:16:09 PM

2 Recommendations Read Replies (3) of 3144

Re: Friday's steep drop in oil prices

<<Friday had steep drops in oil and other commodity prices due to new (higher) margin requirements due to take effect Monday.>>

Does this price action provide strong evidence in the debate as to how much speculation influences commodity prices?

I don't know much about energy nor futures, but as far as I can see, the large price decline resulting from this small margin change on a small commodities exchange would seem to indicate a larger role for speculation than is currently perceived.