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Why is Money Pulling Out of Oil Market?

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  • Description

    FBN’s Jeff Flock on the factors causing the low trading volume for oil.

  • Duration 1:54
  • Date

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This transcript is automatically generated

This -- -- -- really rattling on the oil markets against then disintegrate report explaining why trading volume for crude was down 6% last month.

-- note their media camp of course and oil also a good bet megas is a good price to get in on it.

Jeff Flock is at the ExxonMobil refinery outside of Chicago.

Jeff.

Because -- we wanted to look more closely at this oil market you know I don't know what you could pick anything that has made.

More money for more people than oil over the past several years.

But take a look at what's happening in the oil market right now in addition to what -- percent which is about the pullback today.

Take a look at volumes this is independent of price but this is what the fiscal cliff debate has done to the volume in the oil market.

Money is sitting on the sidelines look -- -- -- -- 2011 it was one of the best months for oil trading almost a million contracts a day.

On the -- -- west Texas intermediate they also had a day where they had almost two million or over two million contracts traded.

Contrast that to last month.

Only about a half million contracts a day traded last month.

And then contrast that to yesterday.

-- word about a 175000.

Contracts and then today.

Even pulled back a little farther although by the time we -- who may be backer -- -- 175000.

Contracts again.

But this is it -- in the uncertainty about this because of the fear of the volatility.

Money is just pull -- out of the of the oil market guys did not want to be in it right now.

We've had some you know conflict overseas as well that caused the run up yesterday.

A lot of guys miss that I talked to Phil Flynn who set a lot of traders miss that run up yesterday at 2%.

Because they just don't wanna be in the market right now because of the fiscal -- uncertainties so.

This thing affects a lot of industries in a lot of ways and.

Basic fundamentals look over the cliff the economy stagnant.

Simple right thank you.

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