Are oil futures markets being manipulated?

posted by
May 23, 2011
Cato Institute
by Jerry Taylor and Peter Van Doren  
Posted in Commentary

"If large changes in futures prices arise from a large collective imbalance of participant beliefs, what is the origin of the imbalance in beliefs? There are two possibilities. In the first, the participants determine their beliefs independently and seek to act on them independently. The result sometimes just happens to be a collective imbalance necessitating a price change to equate the number of longs and shorts. In the second, participants collude to create the imbalance." (05/18/11)  

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