Nymex Oil, Natgas Contracts Hit Record Open Interest

Tyler Durden's picture


Something is about to break. Everyone has moved from one side of the boat, to the other. What happens next is anyone's guess. And this happens just as the CME announced it is expanding its daily lock limits for crude trading from $10 to $20 just for the day. We are speechless at this update as there is no possible way to describe this as reasonable risk management.


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bob_dabolina's picture

It's a fuckin' par-tay

In Fed We Trust's picture



You talk about them never rasing the margin on S&P, as they have silver 5 times this week, but what about crude in 2008?

I dont remember any margin increases as oil ran up to $147.

It's obvious the exchanges have control over the underlying market thru "margin rates"

CPL's picture

Mo'Oil, MO'Problems...


Just snapped like a rubber band holding a brick.  Look out below people.

CPL's picture

HOly fuck...bottom dropped out of it.  SL triggers are going batshit insane.


I'm seeing zero buying volume, friday is going to be very very weak. 

SheepDog-One's picture

And everyone is in on all time high margins as well. History may not repeat itself exactly, but it sure does rhyme well.

Quinvarius's picture

This is people running from the government credit card.  They have come to subsidize the commodity markets by eating giant losses.

collegepunk's picture

we need a system restart

CPL's picture

You are going to get one.  If the paper trades aren't in line with the actual delivery costs/price then this is going to get very, very, very strange.  That reserve stockpiled that Obama talked about will be gone in two days because of hoarding, and the economy is going to seize up again.


More than likely drop dead for good.

hambone's picture


Hephasteus's picture

Just a little texas hedging till we finally whip ghaddafi and libya and iran. Should be no trouble. LOL

chunkylover42's picture

darn those speculators.  oh wait, we like it when the prices are going in THIS direction.

CPL's picture

On a retail end it's awesome...but last time it did it the market tanked into the 6000 range....then all the world governments started to print money hand over fist.


Anyone care to see if history repeats itself.


This time....it's Canada's turn along with the rest of BRIC.

SheepDog-One's picture

The casino got everyone in, then turned off the lights. Who now will step up and buy oil when they see in minutes they change the entire rules of the game? This is going nowhere, wouldnt be surprised to see flash crashes everywhere.

traderjoe's picture

Yea, right? 5 silver margin hikes in one week and they open up the oil limit to allow it to go down. 

"All of your monies are belong to us..."

jus_lite_reading's picture

YUP!!! The big reset button in the sky is about to be pushed.... sorry folks... good luck




We have only a few months left...

Temporis's picture

I take your planet X and raise you one "Second coming of Christ".


Temporis's picture

This website claims Jesus will make a comeback on May 21's 2011 and the earth will be destroid on October 21'st 2011.

Whats funny is your "Planet X" will pass in front of the earth on October 19th...


What are the odds.

Sophist Economicus's picture

Well, if he's a hemorrhoid, it's timmay...Saw it for a fact on the Banzai poster

Bob's picture

Thanks for the hot tip on ANGST.

Alert's picture

I'm sorry...what does this mean?  Oil/Gas going up or down?

Drag Racer's picture



once again cnbc nails it in their forcasting

The Next Target for Oil is $124


Re-Discovery's picture

(that one always gets me, cant stop giggling on that answer.)

CPL's picture

Down and the anchor isn't tied to anything.  It's just spinning out of control taking out anyone that hedged on inflation.  basically all the banks are going to need another TARP.


This time it'll cost four trillion.

Mentaliusanything's picture

I wonder if AIG is still in the business of covering errors in judgement. If they are then.........

tecno242's picture

" Everyone has moved from one side of the boat, to the other. What happens next is anyone's guess."

It capsizes?

Re-Discovery's picture

Nope.  Captain Bernanke orders them all to run back to the other side boat to balance things out.  In T minus 5 . . .4 . . .3 . . .2 . . .

AndyMan's picture

No no, everyone familiar with maritime traditions knows that when a boat is sinking, the only solution is to print more money.

saifstolemythesis's picture

May 21st is the end of the world.

jus_lite_reading's picture

Try Sept 20-21st...... 4 major comets coming and 1 will hit the earth

Bob's picture

Sad thing is that I've already bookmarked the link and am musing about shorts to play.

MayIMommaDogFace2theBananaPatch's picture

They'll print their way through a comet-crash too.  It's the only thing they know.

Bob's picture

I know, I wrack my brain for an issue that would absolutely have to take a hit on a disaster and I just can't find it!  That's how fucked up things are. 

MachoMan's picture

The shorts of the best looking woman at arms length so you can play the "let's screw on last time before we die" line.

If you don't die, then you can feed her some canned hamz afterward...  reduce the inventory and all...  so she doesn't feel cheap and what not.

gordengeko's picture

I think they are pissed off with silver.

mrdenis's picture

Remember a few weeks ago the news about an options trader who bought 100,000 July 2011 puts with a strike price of 25 for 0.10 each? That 1 million dollar investment (remember each put is for 100 shares) is now worth $6.5 million 'cause those puts are now trading for 0.65. .....Ben is tat U ?

Urban Redneck's picture

July 2011 puts, it's not a profit until the trade is closed.

SheepDog-One's picture

$6.5 million wouldnt even be pocket change for a few seconds for the Bernank.

6 String's picture

WTF? Low oil good for 90% of the population. Low stock prices bad for 10% I thought?


LeftCoastRefugee's picture

BTFD......maybe one time too many......

Sutton's picture

How do you move the limits same day?

Talk about moving the goalposts.

If I did in a 7-11 what the Lords do daily in the markets, I'd be locked up for life.

LawsofPhysics's picture

Massive dis-connection in everything paper relative to all things physical.  What else do you expect to start happening?

wirtschaftswunder's picture

How can gold be down $48?

nobusiness's picture

3 PM Margin calls must have really hurt.

catch edge ghost's picture

Oh look, more hyper controlled inflation.

To be continued... 

entendance's picture

The secret to winning big in the market is not to be right all the time but to lose the least amount of money possible when you are wrong. As long as you win larger than you lose, you will be a profitable trader at the end of each year. Pride, ego and stubbornness prevents a trader from reaching the levels that very few can master.
"Who should I try to dissuade from trading?"