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FBN’s Jeff Flock at the CME on President Obama’s plans to deter alleged price manipulation from occurring.
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The Segway here at the so called oil speculators are actually speaking out.
Responding to president Obama's proposal for higher penalties on companies accused of -- market manipulation or Jeff Flock is in the -- of this -- where this alleged price manipulation.
Takes place on the cover of a commonly -- -- -- -- I am surrounded by these speculators right now Charles how -- a look at all these people there all speculators.
Have been talking to them all day buoyed -- really have their feathers rat rat -- out here.
I wanna talk to chair -- who has a director of search bottling group -- -- -- would be President Obama here.
How can you tell me that all the money that has poured into the oil market.
From the failed housing market -- the rest all these big guys in speculating Hollywood to do was make money off hasn't had driven up the price of oil.
It certainly has but they're really doing their job one of the one of the major impacts of speculators in the market is the allocate resources over time.
It helps the market iron out supply and demand efficiencies that result in stable price he admits -- -- -- -- -- -- The price of oil right popcorn out through an arms in the air and -- and amortization whenever the oil -- forty dollars a barrel on speculation it's gonna go lower she can't get just -- beginning Amanda blamed speculators for the bad but they also help out on the good.
What you guys are all just in it to make money paid search -- -- -- Paper barrels of oil right in a trade real barrels of oil -- small percentage your -- -- real parents -- trade a bear.
How could that be good.
Could well I that you just said it did you can take delivery on the -- on the physical product as well.
But I mean really it's it's really helping the market out -- -- trying to keep prices stable trying to keep in it's it's basically trying to fix problems in the future that's -- -- -- futures market.
We got out -- this week raised the margin requirements on this I mean why should I be able to control so much oil with such a little margin why do we just -- margin requirements would not try to -- Well you know historically -- in the short term but you know margin requirements -- -- work you do decide at the price of oil.
That's there to protect those that are involved in the market from having some legal wrong on a bad trade it's it's an insurance it's not really telling you whether the prices to wire two -- Merger terms -- just insurance -- -- -- going wrong internally operational.
-- -- -- the debate's gonna continue as I continue my reelection campaign here is President Obama I'll be talking of these guys try to talk him out of this but that's a pretty good answers for President Obama flock also keep in mind it's easy to speculate -- the other by the federal government the Federal Reserve.
-- a cheaper dollar doesn't make it out no it makes it really a no brainer Jeff Flock at the -- -- thanks -- -- we pre.
