You're watching...
Greenberg Capital President David Greenberg on the volatility in oil prices.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
So you saw oil futures trading higher today by more than 2% on news that US oil inventories dropped more than expected -- supply coming down.
Yeah exactly to this next analyst says little oil prices plus simply overreacting David Greenberg is -- president of -- -- capital he joins us now David okay why why low prices overreacting.
Well first before the four million draw.
Yeah we are on the floor it's not so much the Troy itself -- last night we thought there was going to be a four million furniture around four million for.
Prices would -- a move that's not a big deal.
Certainly it's a West Coast were not as important as -- East Coast or depending on what life would mean by that.
Just as more -- -- that means there's more oil in the East Coast maybe not in certain parts of the West Coast where it's just not it's okay.
Not that big of a deal again.
And also look where we've come in the last week was no oils moved to ten to fifteen dollars in both directions on very simplistic news and it is going to be very expensive workers from.
Here that's why we brought you and -- -- -- that David has worked on the -- is traded this out of here.
Over 22 offers truck hits a thirty year's -- -- -- but I've just seen this bizarre trading range that is trading.
Apropos of nothing as it pertains to the actual fundamentals of how much oil we -- how much -- using.
What is going on here and and for people who own it Dow components like Chevron -- ExxonMobil what should they be doing.
What you have to have a very very strong stomach to trade any group is connected to oil.
We lost the oil on the supply and demand issue many years ago when we when electronic once you opened up the oil markets for the entire world trade it.
On the instant -- not supply and demand but on any kind of fundamental or non fundamental news came out.
The market can go anywhere think about we have seven dollar move on the upside occurred last Friday.
All on news that okay yes there was a package things might not be as bad but nobody start driving that day to handle seven dollar move.
But in effect today and how many times have you seen that comes little -- it is it's all it's it's all computers it's it's mostly stuck I mean step out of you know the real question is is a -- -- -- wouldn't seven trading days.
And that's where pricing comes -- how many times have you seen -- -- fifteen dollars in the past you know in two days now goes off the board.
And the world has changed that much the back of the curve is more important on the front of -- what happens next.
What happens next is that we hear the the Washington and the administration saying we're going to have to speculators were don't have to high frequency trainers and nothing ever happens.
You know they are class -- sound bites I have offered a lot of consulting and offering what we can do about it Clinton I think to see if you see is in way over -- head.
Because between new derivative markets that are out the new fundamentals and trading.
They're competing against -- -- a lot more pandas have a lot more sophistication show us with a hand signals -- they can do that anymore January month but it says everything's all right Jennifer this is voting left on the floor.
I thought I was put and I'm in crude -- used to beat out 200 people there's six people buying and I think one of them disposal wanna hang out at home.
I got to stop computer and it looks -- news as well some kind of news out -- the market is just right before.
The number came out overlapping and export markets and that wondering how overlapping little -- that eventually become a dangerous situation in flash crash right all types photos of it it is -- dangerous I I lecture often in colleges and universities and I teach these kids.
About -- the high frequency traitor is whether you know I was a big proponent a proponent against it boom but now.
It's a little bit mixed because they've become the new market makers and locals and the what happens with them -- -- -- to -- when we -- on the floor.
And news came out and all the locals just -- gatherings and take a -- launch.
And look for it you know the paper brokers -- look for a bit.
The high frequency traders are doing the exact same things that the market makers that we just the nano seconds and then they're all written the same -- when they -- They all -- and that's where the flash crash.
Comes from David Greenberg the president of Greenberg capital relates stuff -- one of the one of the last great traders here stay OK okay thanks a lot zero yeah it's a long if not.
-- -- -- --
