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Oil bulls face severe test of faith (and pockets)

Reuters -- The collapse in oil prices since the start of May is posing a severe test for oil market bulls who must meet big margin calls to maintain their positions -- or close them out and accept their losses.
The price collapse has already prompted many hedge funds and commodity trading advisers to pull out of WTI.

TO CLING ON OR QUIT?

In April and especially May, plunging Brent and WTI prices are likely to have inflicted significant pain on many hedge funds. Month-end performance letters are likely to reveal some big casualties.

With Brent languishing, and bulging stockpiles around the NYMEX delivery point at Cushing, Oklahoma, WTI prices may struggle to rally much.

Many must now be more focused on minimising losses than maximising gains.

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Submitted May 15, 2012 By: Tomeboy

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Bezalel Champion Author Oklahoma City Posts:12,234 Points:2,318,210 Joined:Oct 2006	Message Posted: May 15, 2012 11:12:50 PM Ignore Bezalel Report Abuse The market is 'net zero' - they bought from someone, so if the funds lose, someone else gains.
zaq001 Champion Author Atlanta Posts:4,119 Points:1,500,755 Joined:Oct 2008	Message Posted: May 15, 2012 11:12:31 PM Ignore zaq001 Report Abuse Not good
papa56NC All-Star Author North Carolina Posts:725 Points:142,760 Joined:Apr 2012	Message Posted: May 15, 2012 11:12:31 PM Ignore papa56NC Report Abuse Oh Yea!!!
vegan_power Sophomore Author Hartford Posts:126 Points:51,030 Joined:Feb 2012	Message Posted: May 15, 2012 11:11:15 PM Ignore vegan_power Report Abuse huh
PrinceLH Champion Author Ontario Posts:2,832 Points:565,745 Joined:Jun 2011	Message Posted: May 15, 2012 11:11:06 PM Ignore PrinceLH Report Abuse Collapse? It should never been this high!
SparkieMi Champion Author Kalamazoo Posts:3,400 Points:615,595 Joined:Sep 2011	Message Posted: May 15, 2012 11:10:26 PM Ignore SparkieMi Report Abuse Really!!!! Too bad....
DickAAA Champion Author St. Louis Posts:2,272 Points:1,372,705 Joined:Jan 2005	Message Posted: May 15, 2012 11:08:29 PM Ignore DickAAA Report Abuse Come on you greedy speculators, take your losses you creeps.
suzmar Champion Author Texas Posts:2,223 Points:896,935 Joined:Jun 2006	Message Posted: May 15, 2012 11:05:24 PM Ignore suzmar Report Abuse I hope the oil bulls lose their shirts.
unclemattie Veteran Author Atlanta Posts:289 Points:478,805 Joined:Oct 2011	Message Posted: May 15, 2012 11:05:06 PM Ignore unclemattie Report Abuse Lower state taxes too
Lukus Champion Author Halifax Posts:8,419 Points:1,701,255 Joined:Nov 2007	Message Posted: May 15, 2012 11:03:52 PM Ignore Lukus Report Abuse ok
Yonkers111 Champion Author Scranton Posts:8,342 Points:859,135 Joined:Apr 2007	Message Posted: May 15, 2012 11:00:30 PM Ignore Yonkers111 Report Abuse It works both on the way up and on the way down.
Fedorov91 Champion Author Tampa Posts:1,475 Points:904,310 Joined:Oct 2008	Message Posted: May 15, 2012 10:59:22 PM Ignore Fedorov91 Report Abuse Boo Hoo.. I feel bad
kbierley Champion Author Dayton Posts:10,739 Points:1,417,820 Joined:Nov 2003	Message Posted: May 15, 2012 10:58:42 PM Ignore kbierley Report Abuse Test of Faith? what is this, a religion now?
bvrbill Champion Author Eugene Posts:3,442 Points:546,265 Joined:Jul 2011	Message Posted: May 15, 2012 10:58:16 PM Ignore bvrbill Report Abuse Keep the traders out of the oil market.
Focus2 Champion Author Illinois Posts:7,910 Points:1,928,350 Joined:Mar 2006	Message Posted: May 15, 2012 10:56:59 PM Ignore Focus2 Report Abuse Goldman Sachs should stick to banking and get out of speculating and manipulating oil prices.
PizzaMon Champion Author Philadelphia Posts:5,134 Points:1,886,455 Joined:Jun 2006	Message Posted: May 15, 2012 10:56:59 PM Ignore PizzaMon Report Abuse Boo, hoo for the traders.
30mpg80 Champion Author Lexington Posts:10,265 Points:1,515,330 Joined:Nov 2008	Message Posted: May 15, 2012 10:56:01 PM Ignore 30mpg80 Report Abuse And all of us paying higher prices because of excess speculation feel so bad for those pitiful fools!
mrbee Champion Author Little Rock Posts:3,894 Points:2,493,530 Joined:Oct 2005	Message Posted: May 15, 2012 10:55:26 PM Ignore mrbee Report Abuse Wait a week. It will be a different story.
grandamgt1 Champion Author Illinois Posts:2,491 Points:1,268,005 Joined:Apr 2008	Message Posted: May 15, 2012 10:53:31 PM Ignore grandamgt1 Report Abuse Good. They've got no business bidding on something they'll never receive.
chillyman3 Champion Author Illinois Posts:1,355 Points:445,390 Joined:Jan 2012	Message Posted: May 15, 2012 10:50:55 PM Ignore chillyman3 Report Abuse ok
Is246 Champion Author Albuquerque Posts:1,044 Points:443,535 Joined:Apr 2011	Message Posted: May 15, 2012 10:50:04 PM Ignore Is246 Report Abuse Good, the traders are who drove the price up.
jdc17327 Champion Author Pennsylvania Posts:2,582 Points:199,730 Joined:May 2009	Message Posted: May 15, 2012 10:47:53 PM Ignore jdc17327 Report Abuse okay great!
BanTheEPA Sophomore Author Dayton Posts:221 Points:49,920 Joined:Jun 2008	Message Posted: May 15, 2012 10:43:03 PM Ignore BanTheEPA Report Abuse Hedge funds and speculators need to stay out of oil markets, and all energy markets for that matter. They are tring to rape and pillage the masses to benefit a few. The steep drop at the end of 2008 should have taught them a lesson. May the financial ruin they have caused be visited on them 10 fold!
skyking19 Champion Author Little Rock Posts:2,021 Points:1,723,490 Joined:Jan 2007	Message Posted: May 15, 2012 10:41:42 PM Ignore skyking19 Report Abuse they could use a few setbacks. May teach them a lesson.
BKool Champion Author Michigan Posts:5,358 Points:1,920,105 Joined:Aug 2005	Message Posted: May 15, 2012 10:39:48 PM Ignore BKool Report Abuse just wait
Dekenel Rookie Author Minnesota Posts:63 Points:23,410 Joined:May 2011	Message Posted: May 15, 2012 10:39:37 PM Ignore Dekenel Report Abuse Hopefully that wall of oil Saudi Arabia sent about 40 days ago is going to arrive. 11 supertankers that hold 2 millions barrels of crude each, then watch the prices tumble. Google "Wall of oil"
justmedc Veteran Author Michigan Posts:382 Points:174,495 Joined:Mar 2012	Message Posted: May 15, 2012 10:38:56 PM Ignore justmedc Report Abuse and yet gas prices jumped here yesterday
danreino Champion Author Twin Cities Posts:8,479 Points:1,565,485 Joined:Mar 2008	Message Posted: May 15, 2012 10:38:56 PM Ignore danreino Report Abuse Collapse ? Down 6% is not a collapse ! CHU on that !
Dekenel Rookie Author Minnesota Posts:63 Points:23,410 Joined:May 2011	Message Posted: May 15, 2012 10:37:04 PM Ignore Dekenel Report Abuse They still make money on the long positions on the way up, and money on the short positions on the way down..Hopefully they short the hell out of oil.
TDIdave Champion Author California Posts:5,193 Points:1,252,215 Joined:May 2006	Message Posted: May 15, 2012 10:36:44 PM Ignore TDIdave Report Abuse ok.
kusanagisama All-Star Author Texas Posts:708 Points:191,725 Joined:Feb 2011	Message Posted: May 15, 2012 10:35:48 PM Ignore kusanagisama Report Abuse Obama sure says he can't do anything, but when a Saudi prince speaks, the price falls quickly.
ShutRBug Champion Author Ontario Posts:1,564 Points:675,365 Joined:Jun 2005	Message Posted: May 15, 2012 10:35:09 PM Ignore ShutRBug Report Abuse Whatever
KWM2011 Champion Author Ontario Posts:1,451 Points:351,950 Joined:May 2011	Message Posted: May 15, 2012 10:29:42 PM Ignore KWM2011 Report Abuse Sure.
Yankee829 Champion Author Dallas Posts:2,344 Points:587,065 Joined:Sep 2010	Message Posted: May 15, 2012 10:28:28 PM Ignore Yankee829 Report Abuse Ok
LaVonneK Champion Author Iowa Posts:3,083 Points:654,225 Joined:Jul 2011	Message Posted: May 15, 2012 10:28:24 PM Ignore LaVonneK Report Abuse Oh.
majorfall Champion Author New York Posts:15,862 Points:3,133,265 Joined:May 2004	Message Posted: May 15, 2012 10:27:34 PM Ignore majorfall Report Abuse maybe next time they will think twice before running up oil prices
GNReddy Sophomore Author Huntsville Posts:141 Points:58,375 Joined:Apr 2012	Message Posted: May 15, 2012 10:27:16 PM Ignore GNReddy Report Abuse ok
kj71TX Sophomore Author Texas Posts:240 Points:31,820 Joined:Jul 2011	Message Posted: May 15, 2012 10:26:59 PM Ignore kj71TX Report Abuse ok
n3tbc Veteran Author Wilmington Posts:355 Points:333,575 Joined:Sep 2011	Message Posted: May 15, 2012 10:26:20 PM Ignore n3tbc Report Abuse ok
RedskinGas Champion Author Tennessee Posts:2,083 Points:1,144,860 Joined:Jun 2006	Message Posted: May 15, 2012 10:26:04 PM Ignore RedskinGas Report Abuse Keep going lower!!
ericbcire Champion Author Nevada Posts:4,665 Points:1,295,410 Joined:Aug 2009	Message Posted: May 15, 2012 10:23:46 PM Ignore ericbcire Report Abuse Oil is way overpriced. It is destined to collapse.
mconley1967 All-Star Author Louisville Posts:586 Points:379,730 Joined:Mar 2012	Message Posted: May 15, 2012 10:23:39 PM Ignore mconley1967 Report Abuse Ok
Reddy Sophomore Author Huntsville Posts:150 Points:62,575 Joined:Apr 2012	Message Posted: May 15, 2012 10:23:05 PM Ignore Reddy Report Abuse ok
djm5x9 Champion Author Atlanta Posts:1,848 Points:519,230 Joined:Nov 2010	Message Posted: May 15, 2012 10:23:00 PM Ignore djm5x9 Report Abuse OK.
bra0712 Champion Author Arizona Posts:3,795 Points:795,800 Joined:Nov 2008	Message Posted: May 15, 2012 10:19:20 PM Ignore bra0712 Report Abuse That's nice
yakstar Champion Author Montreal Posts:2,555 Points:507,225 Joined:Jan 2012	Message Posted: May 15, 2012 10:18:58 PM Ignore yakstar Report Abuse wow- even the speculators have to pay the piper...
DEG Champion Author Las Vegas Posts:17,745 Points:3,519,480 Joined:Jul 2003	Message Posted: May 15, 2012 10:18:50 PM Ignore DEG Report Abuse A few bad decisions by speculators may remove some speculation from the market. Hopefully the speculators lose big.
rpr77 Champion Author Philadelphia Posts:4,049 Points:795,960 Joined:Mar 2011	Message Posted: May 15, 2012 10:13:28 PM Ignore rpr77 Report Abuse ok
AKmailman Champion Author Alaska Posts:5,763 Points:1,585,565 Joined:Jul 2004	Message Posted: May 15, 2012 10:12:39 PM Ignore AKmailman Report Abuse take it in the shorts like us consumers
Blue48 Champion Author Illinois Posts:7,450 Points:1,666,620 Joined:Feb 2007	Message Posted: May 15, 2012 10:11:13 PM Ignore Blue48 Report Abuse UP..DOWN..UP..DOWN!
Dsin44 Champion Author Abbotsford Posts:1,275 Points:276,195 Joined:Apr 2011	Message Posted: May 15, 2012 10:10:09 PM Ignore Dsin44 Report Abuse bend over... smile like the rest of us
PetroScopper Champion Author Houston Posts:6,760 Points:1,577,635 Joined:Aug 2008	Message Posted: May 15, 2012 10:07:19 PM Ignore PetroScopper Report Abuse Hopefully, this is a trend that we can look forward to seeing continue for a little while.