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Oil traders place spring bets on "widowmaker"

Reuters -- Some of the boldest speculative oil traders at banks and hedge funds are betting on a return of gasoline's strength ahead of peak summer demand, bringing an early shift to summer from winter to the oil market.

Many traders use a popular spread play between gasoline and heating oil to try to make money from seasonal shifts in demand in the Northern Hemisphere.

But the spread is one of the most volatile and unpredictable in the oil market and is often called "the widowmaker" after the plight of those who have made the wrong bet.

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Submitted Mar 11, 2010 By: Mudsprings

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Houckster Champion Author Atlanta Posts:6,534 Points:631,505 Joined:Sep 2003	Message Posted: Mar 13, 2010 8:09:38 AM Ignore Houckster Report Abuse GASOKIE writes: If the speculators all go broke and no one bids on the gas & oil it looks like we will all be walking. It may not be a very good system but it's still the best in the world. ___ You're right, it isn't a good system but we don't have to walk. What we have to do is pull ourselves out of the petroleum rut we're in. Advances in our ability to generate electric power and advances in batteries mean that electric cars will displace the need for billions of gallons of fuel as well reducing the huge flow of dollars out of the country each month. When was the last time we had a positive balance of trade? The less we need oil, the less we will be vunerable to terrorism and less our greenhouse gas emissions will be.
albert2008 Champion Author Winnipeg Posts:2,274 Points:491,310 Joined:Sep 2008	Message Posted: Mar 13, 2010 8:01:58 AM Ignore albert2008 Report Abuse easy come easy go
Houckster Champion Author Atlanta Posts:6,534 Points:631,505 Joined:Sep 2003	Message Posted: Mar 13, 2010 7:57:51 AM Ignore Houckster Report Abuse The power over the country by the speculators gives us the ultimate reason why we've got to get off the petroleum platform as soon as possible. [Edited by: Houckster at 3/13/2010 9:00:15 AM EST]
cheapmonkee Champion Author Portland Posts:21,853 Points:2,154,410 Joined:Jun 2004	Message Posted: Mar 13, 2010 2:33:12 AM Ignore cheapmonkee Report Abuse They can't take the money with them to hell.
gasokie Veteran Author Oklahoma Posts:481 Points:546,785 Joined:May 2007	Message Posted: Mar 12, 2010 11:07:48 AM Ignore gasokie Report Abuse If the speculators all go broke and no one bids on the gas & oil it looks like we will all be walking. It may not be a very good system but it's still the best in the world.
CruisinLinda Champion Author Tallahassee Posts:6,269 Points:1,258,085 Joined:Sep 2005	Message Posted: Mar 12, 2010 10:57:35 AM Ignore CruisinLinda Report Abuse The CFTC must use its authority to throw out of the oil futures markets it regulates the non-consuming speculators. They bid up the price that consumers must pay.
fullcirclethink Veteran Author Washington Posts:499 Points:44,030 Joined:Jun 2009	Message Posted: Mar 12, 2010 10:03:51 AM Ignore fullcirclethink Report Abuse I guess even misery has it's price!
ENORMS Champion Author Colorado Posts:1,968 Points:661,950 Joined:Sep 2006	Message Posted: Mar 12, 2010 6:05:19 AM Ignore ENORMS Report Abuse The speculators keep pushing up the price of oil until it kills the economy and puts more people out of work.
ronsimonil All-Star Author Illinois Posts:718 Points:152,495 Joined:Mar 2009	Message Posted: Mar 12, 2010 5:16:56 AM Ignore ronsimonil Report Abuse Let them fall into their own greedy mire.
ED6 Champion Author Riverside Posts:4,958 Points:964,035 Joined:Jul 2007	Message Posted: Mar 12, 2010 3:31:05 AM Ignore ED6 Report Abuse I know, they want to raise the price of gas so they the envestors will make more money- - - Greed. . .
EVBuddy Champion Author Nevada Posts:11,511 Points:2,021,610 Joined:Sep 2004	Message Posted: Mar 12, 2010 3:18:11 AM Ignore EVBuddy Report Abuse Did they factor in the better mileage of the newer cars?
granitestater Champion Author New Hampshire Posts:3,891 Points:598,925 Joined:Oct 2008	Message Posted: Mar 12, 2010 3:16:54 AM Ignore granitestater Report Abuse Where did all you maroons go to school? Patrice Lumumba University? Here's another graduate who thinks like you do and runs a country... In his shorts... [Edited by: granitestater at 3/12/2010 4:17:51 AM EST]
computernut2008 Champion Author Ohio Posts:1,471 Points:362,615 Joined:Oct 2008	Message Posted: Mar 12, 2010 3:09:54 AM Ignore computernut2008 Report Abuse And I hope there are plenty of their Widows
twobroke61 Champion Author Michigan Posts:3,246 Points:582,485 Joined:Sep 2008	Message Posted: Mar 12, 2010 3:00:54 AM Ignore twobroke61 Report Abuse i hope it takes all of the speculators at once then maybe we will have a break
NotTom Champion Author New Hampshire Posts:2,318 Points:714,240 Joined:Aug 2005	Message Posted: Mar 12, 2010 3:00:47 AM Ignore NotTom Report Abuse We need to get off oil PERIOD. We can not continue to send our money to OPEC and speculators.
1fulltank Champion Author Buffalo Posts:2,800 Points:540,300 Joined:Nov 2008	Message Posted: Mar 12, 2010 2:59:26 AM Ignore 1fulltank Report Abuse I wonder how many people know speculators, personally or peripherally, and actually invite them over for supper or allow their kids to play together?
theawesome1 Champion Author Cleveland Posts:3,455 Points:769,060 Joined:Aug 2005	Message Posted: Mar 12, 2010 2:56:24 AM Ignore theawesome1 Report Abuse Someone kill these Specaulators who are killing us. Time for them to be a has been, just like millions of Americans.
findcheap Champion Author Los Angeles Posts:4,468 Points:995,065 Joined:Apr 2007	Message Posted: Mar 12, 2010 2:53:13 AM Ignore findcheap Report Abuse most trading stratebys, which goes to show that this talk about "fundaments" is "fundamentally wrong."
mazdaboy Champion Author Portland Posts:2,822 Points:1,096,650 Joined:Aug 2003	Message Posted: Mar 12, 2010 2:52:54 AM Ignore mazdaboy Report Abuse I think the bankers are worse.
toyota1999 Champion Author Louisville Posts:5,121 Points:1,059,635 Joined:May 2007	Message Posted: Mar 12, 2010 2:49:20 AM Ignore toyota1999 Report Abuse Those who play with OUR money for THEIR gain should become the widows. I don't have problems with bankers. I do have problem with greedy scum oil futures traders. IT is them that caused me to pay 4 bucks a gallon. I haven't forgotten.
jimgraham Champion Author Akron Posts:5,133 Points:968,590 Joined:Oct 2007	Message Posted: Mar 12, 2010 2:44:22 AM Ignore jimgraham Report Abuse We need to have a big new bunch of widows out there!!!
Ltdc Champion Author Long Island Posts:2,182 Points:684,220 Joined:Jul 2007	Message Posted: Mar 12, 2010 2:42:38 AM Ignore Ltdc Report Abuse If you can't pay you shouldn't play!
granitestater Champion Author New Hampshire Posts:3,891 Points:598,925 Joined:Oct 2008	Message Posted: Mar 12, 2010 2:40:46 AM Ignore granitestater Report Abuse Here's an article that shows how even heads of state don't crap about speculation either. In his pants... [Edited by: granitestater at 3/12/2010 3:43:28 AM EST]
Pozole Champion Author Portland Posts:2,994 Points:581,855 Joined:Mar 2005	Message Posted: Mar 12, 2010 2:04:49 AM Ignore Pozole Report Abuse ...may ALL the speculators ride the widowmaker train...
jackson661 Champion Author Columbus Posts:1,664 Points:538,635 Joined:May 2006	Message Posted: Mar 12, 2010 2:03:14 AM Ignore jackson661 Report Abuse Very interesting speculation who will win.
14of45SSR Champion Author Saskatchewan Posts:2,007 Points:443,455 Joined:Dec 2008	Message Posted: Mar 12, 2010 1:49:33 AM Ignore 14of45SSR Report Abuse hmmm...
speedys Champion Author Utah Posts:1,896 Points:1,543,495 Joined:Nov 2005	Message Posted: Mar 12, 2010 1:35:36 AM Ignore speedys Report Abuse I hope they lose more than their shirts!
sjambok Champion Author Nashville Posts:5,159 Points:1,101,260 Joined:Apr 2006	Message Posted: Mar 12, 2010 1:31:26 AM Ignore sjambok Report Abuse Nice to see that they're all speculating with an economy breaker. Goes up, they win, the economy loses, goes down, economy possibly recovers. well, that part is more up in the air.
GMVAN Champion Author Calgary Posts:1,625 Points:388,455 Joined:Apr 2009	Message Posted: Mar 12, 2010 1:14:42 AM Ignore GMVAN Report Abuse I hope they lose their shirt.
rwm1 Champion Author Iowa Posts:1,907 Points:813,320 Joined:Oct 2007	Message Posted: Mar 12, 2010 1:00:16 AM Ignore rwm1 Report Abuse These geniuses probably go to Vegas and bet all red on roulette. I wouldn't hedge my bets with them. I'm not planning on using any more than last year.
TPlayer All-Star Author Fort Wayne Posts:572 Points:138,955 Joined:Jan 2010	Message Posted: Mar 12, 2010 12:56:53 AM Ignore TPlayer Report Abuse You're right on the money edtx2009... manipulation for profits off the masses...
Hunter114 Champion Author Chicago Posts:2,798 Points:451,795 Joined:Apr 2009	Message Posted: Mar 12, 2010 12:55:44 AM Ignore Hunter114 Report Abuse Speculators creating more problems.
RENEGADEGAS Champion Author Missouri Posts:7,311 Points:580,980 Joined:Jul 2008	Message Posted: Mar 12, 2010 12:54:30 AM Ignore RENEGADEGAS Report Abuse EcoVore...I hope they get burned.
Edtx2009 Champion Author Houston Posts:1,258 Points:260,765 Joined:Jun 2009	Message Posted: Mar 12, 2010 12:43:38 AM Ignore Edtx2009 Report Abuse The Oil speculators are betting on being able to manipulate oil prices so the price continues going up. I wish they would just tell the truth.
TIGERPAW46 Champion Author Florida Posts:2,587 Points:489,565 Joined:Mar 2004	Message Posted: Mar 12, 2010 12:37:36 AM Ignore TIGERPAW46 Report Abuse not only the markets but the Speculators have contributed to the ruin of the whole country & soon maybe it's total destruction.
EcoVore Champion Author Los Angeles Posts:1,987 Points:294,555 Joined:Jun 2008	Message Posted: Mar 12, 2010 12:35:59 AM Ignore EcoVore Report Abuse Speculators setting self up to get burned again. They never learn,lol.
Saturn93 Champion Author Salt Lake City Posts:4,038 Points:974,390 Joined:Oct 2006	Message Posted: Mar 12, 2010 12:35:47 AM Ignore Saturn93 Report Abuse Higher gas prices are on the way again.
rippertoo All-Star Author Tacoma Posts:603 Points:129,260 Joined:Jan 2010	Message Posted: Mar 12, 2010 12:35:46 AM Ignore rippertoo Report Abuse And more people get the shaft.
grouch311 Champion Author Illinois Posts:3,859 Points:636,605 Joined:Jun 2007	Message Posted: Mar 12, 2010 12:35:12 AM Ignore grouch311 Report Abuse i really feel sorry for them if they made the wrong bet, NOT
comprof Champion Author Houston Posts:1,581 Points:350,725 Joined:Jul 2009	Message Posted: Mar 12, 2010 12:18:30 AM Ignore comprof Report Abuse Unfortunately, Speculators have not only ruined the oil market but also the entire stock market. Small guys do not have a chance.
rugbyphil Champion Author Las Vegas Posts:13,560 Points:2,511,615 Joined:Apr 2003	Message Posted: Mar 12, 2010 12:17:40 AM Ignore rugbyphil Report Abuse gasoline prices will go up over time, just like the Dow Jones
greenfog Champion Author Illinois Posts:1,533 Points:638,050 Joined:Feb 2008	Message Posted: Mar 12, 2010 12:12:36 AM Ignore greenfog Report Abuse good, lets hope the speculators loose their A$$!
jadeusa Champion Author Dallas Posts:4,086 Points:836,010 Joined:Sep 2005	Message Posted: Mar 12, 2010 12:12:01 AM Ignore jadeusa Report Abuse Hedge funds are always right thus the widowmaker.
benjy Champion Author Chicago Posts:4,588 Points:854,500 Joined:Nov 2003	Message Posted: Mar 12, 2010 12:11:17 AM Ignore benjy Report Abuse Thieves for sure...
250FORD Champion Author Minnesota Posts:7,484 Points:1,197,585 Joined:Feb 2007	Message Posted: Mar 12, 2010 12:09:43 AM Ignore 250FORD Report Abuse These are not speculators, they are just manipulators.
pbc2001 Champion Author Dallas Posts:2,311 Points:416,430 Joined:Feb 2009	Message Posted: Mar 12, 2010 12:06:24 AM Ignore pbc2001 Report Abuse Who knows what tomorrow will bring.
CA_Jones All-Star Author Chicago Posts:825 Points:130,245 Joined:Jan 2010	Message Posted: Mar 12, 2010 12:02:43 AM Ignore CA_Jones Report Abuse Speculators, huh?
LoneGuy Champion Author Lansing Posts:3,446 Points:1,322,500 Joined:Aug 2005	Message Posted: Mar 12, 2010 12:01:27 AM Ignore LoneGuy Report Abuse Yes we are now seeing speculation show up as summer appears. We had another spike on Thursday in mid Michigan from $2.62 to $2.79.
Blackice Champion Author Twin Cities Posts:3,158 Points:792,305 Joined:Oct 2003	Message Posted: Mar 11, 2010 11:46:19 PM Ignore Blackice Report Abuse Old article...but hope they sink.
Amtrgas Champion Author Oakland Posts:2,090 Points:752,355 Joined:Dec 2007	Message Posted: Mar 11, 2010 11:39:17 PM Ignore Amtrgas Report Abuse The problem with SPECULATORS, is the money they are risking is not their own. So if they make a bad buy, it is not their money. If they make a killing, then they share in the profits. Either way they win.