News about Crude.

From ADVN:

·In energy news overnight Venezuelan President Chavez says that oil markets are well supplied, noting that the country does not have plans to nationalize any more companies. Chavez added that Venezuela would like to continue selling oil to the US. The Wall Street Journal overnight looked at a plan that would give federal regulators oversight of energy markets. The measure is part of the farm bill that the Senate passed on Thursday. Traders cited the move to close the so-called Enron Loophole as a factor behind today's trading in energy markets. Under the government's plan, the CFTC will consider trading volumes and whether contracts are being used to establish a price reference for other contracts; The plan also requires traders to maintain audit trails by supplying reports on any large trades to the CFTC, imposes record-keeping requirements and forces electronic exchanges to monitor trading behavior and prevent manipulation. Lawmakers are also mulling proposals to increase margins on energy futures. The Enron Loophole bill does not give authority to regulators for oversight of foreign trading on US terminals The Wall Street Journal wrote overnight that oil refiners are starting to focus on diesel fuel production over gasoline. Goldman Sachs raised its 2H WTI oil price forecast to $141/barrel from $107/barrel

Jeff’s corner:

What scares me is that Goldman Sachs is still fanatical about oil prices after all that has happened in trying to flush out corruption and over leveraged speculation. Goldman Sachs holds more water than say Citi Group because Goldman Sachs is actually owned by the same people that own the Federal Reserve. (When the subprime meltdown occurred Goldman Sachs made billions while some of the largest banks in the world (that we know of as reported on paper) lost 10’s of billions. UBS is the second largest currency trader in the world and they lost 10’s of billions on subprime because they were not clued in because they are not owned by this group (Rothschilds, Rockefellers). JPMorgan made half a billion. These are the only two I’m aware of in the USA. JPMorgan is also mainly owned by the same group that owns central banks around the world. This is why I’m concerned.) Can Goldman hold the price of Crude up? No I don’t think so. Once panic hits I think they’ll take a beating for a few months as they restructure their risk models, but no doubt the end of the year they will be in the black.

When Goldman talks traders listen. Goldman has been saying these high oil prices for months. They do not have control of the Senate as witnessed by the blockage of the SPR insanity by a veto-proof vote in Senate this week. Now the signing of a bill that helps prevent over leveraged speculating; which is what got us in this mess to begin with, shows that Rothschilds don’t own everyone. Unfortunately there will always be hideouts in other countries that want to do business with trillionaires, so trading accounts will be opened in the Caymans and Switzerland etc. where positions are not reported and leverage is higher.

In the near term I think Senate did the right thing. Oil might chop around here as options expire, but next week we should see $15 drop. Once we see that drop there will be blood in the water; and panic moves the market faster than greed, so you’ll see a bloodbath on Wall Street. It makes trading harder for me too because global risk management software trades Crude next to Currencies as a hedge, so they will be drawing down and losing credit hand over fist which creates volatility as they margin out for 10’s of millions at a time. The market will pop and groan on their massive weight as it enjoys lower crude but takes hits on margin calls from Mid East and Wall Street speculators. I think everyone was right when they said volatility was at historic lows in first quarter 2007.

Forex fundamental breakdown. Crude.

Managed capital.