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GasBuddy News Article

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One big order, thousands of small ones, seen behind oil tumble

IBN Live -- NEW YORK (Reuters) - A single large sell order in the benchmark European Brent oil market, followed by an abrupt U-turn among high-frequency traders, may have caused one of the most abrupt price routs ever, brokers and analysts said on Tuesday.

As the dust settled on Monday's four-minute, nearly $4 plunge, other possible causes such as an erroneous "fat finger" trade, a computer program run amok or a broad, rumor-driven sell-off were set aside in favor of a combination of one big trade - potentially as much as 12 million barrels worth some $1.4 billion - and tens of thousands of computerized orders.

"There was most likely a large fundamental seller in the market yesterday," said Eric Scott Hunsader, Chief Executive of Nanex, a trading consultancy that regularly conducts detailed fore


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Submitted Sep 19, 2012 By: aservant
Category: Daily News Article Discussions > Topics Add to favorite topics  
Author Topic: One big order, thousands of small ones, seen behind oil tumble Back to Topics
REPLIES (newest first) Post a Reply
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rcornero
Sophomore Author Toms River

Posts:225
Points:388,860
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Message Posted: Sep 20, 2012 6:24:33 AM

QE3 is not going to help. The market knows this.
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remay
Champion Author Houston

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Message Posted: Sep 20, 2012 6:21:00 AM

Traders run amuck! Yikes!
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spiderjay
Champion Author Little Rock

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Message Posted: Sep 19, 2012 5:18:10 PM

dont get it
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GatorGuy
Champion Author Columbia

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Message Posted: Sep 19, 2012 3:21:34 PM

It was me, I was just stocking up while oil prices were so 'favorable'.
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ZeroBoxes
Champion Author Mississippi

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Message Posted: Sep 19, 2012 2:19:23 PM

Sure am glad I took Managerial Accounting when it wasn't popular.
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JXQW
Champion Author Kansas City

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Message Posted: Sep 19, 2012 1:25:28 PM

no fat finger no flash plunge just a maneuver ...!!
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Cheepo
Champion Author Tampa

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Message Posted: Sep 19, 2012 12:34:21 PM

Drill baby drill here and now!!!!!!!!
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QualTekGuy
Champion Author Illinois

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Message Posted: Sep 19, 2012 12:14:47 PM

And yet, the price at the pump won't go below $4 at the stations in my area.
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Jeff4U
Champion Author Atlanta

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Message Posted: Sep 19, 2012 11:36:27 AM

All I've got to say to speculators is HahaHa!!!
I hope they all have that sick feeling in the gut, the same one we feel when we visit the gas pump.
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1972Pinto
Champion Author Wisconsin

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Message Posted: Sep 19, 2012 11:08:02 AM

that's technology set the range on your computer to buy low sell high. when you are dealing with so many people set up like that, it's a chain reaction
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sydb7
Champion Author Atlanta

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Message Posted: Sep 19, 2012 10:58:20 AM

Speculators trying to manipulate prices higher than they should be! 1% greed!

[Edited by: sydb7 at 9/19/2012 11:59:00 AM EST]
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nskmda
Champion Author Grand Rapids

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Message Posted: Sep 19, 2012 10:43:39 AM

@babyjudy
it's a "free market", man. =)
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F81M
Champion Author Indiana

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Message Posted: Sep 19, 2012 10:37:04 AM

It will all balance out, no need to get excited.
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rtw777
Champion Author Florida

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Message Posted: Sep 19, 2012 10:35:06 AM

Blame it on the finger.
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nauzad
Champion Author Las Vegas

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Message Posted: Sep 19, 2012 10:25:41 AM

Speculations and finance guys.
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Mariuxus
Champion Author Chicago

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Message Posted: Sep 19, 2012 10:15:24 AM

ok
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Wolfwings
Champion Author Delaware

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Message Posted: Sep 19, 2012 10:04:50 AM

I guess we need MORE "Fat Finger" trades like this.
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99church
Champion Author Indiana

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Message Posted: Sep 19, 2012 9:57:25 AM

its been 3.99 here for about 3 weks now
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chuckhermann
Champion Author New York

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Message Posted: Sep 19, 2012 9:56:05 AM

Forget being told, will anyone other that the folks who initiated it every really know. And since they did it and saw the reaction, what's to keep them from planning to do that again, then buy back their position when the prices plummet?
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VernonOR
Champion Author Oregon

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Message Posted: Sep 19, 2012 9:54:42 AM

Cheapest price in town today $3.87, that is not good news as far as I'm concerned.
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Rans35PG
Champion Author Modesto

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Message Posted: Sep 19, 2012 9:54:32 AM

feel bad for the traders. Not.
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zimowski
Champion Author San Jose

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Message Posted: Sep 19, 2012 9:53:42 AM

Will we ever be told what really happened?
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fieldt
Champion Author Lansing

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Message Posted: Sep 19, 2012 9:51:31 AM

I thought so too, TBRR.
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Old Timer
Champion Author Akron

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Message Posted: Sep 19, 2012 9:51:11 AM

Less than 4% of the price is NOT a plunge.
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scrossi
Champion Author Indiana

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Message Posted: Sep 19, 2012 9:50:37 AM

Agreed jimmy544.
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bjdorval
Champion Author Quebec

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Message Posted: Sep 19, 2012 9:49:46 AM

Can we have more deregulation in the financial markets like the Tea Party folk are preaching?
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RonElp
All-Star Author El Paso

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Message Posted: Sep 19, 2012 9:49:43 AM

I couldn't agree more jimmy544
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jimmy544
Champion Author Boston

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Message Posted: Sep 19, 2012 9:47:42 AM

This is an example of what is wrong with the US equity markets. The speculators have too much control over the direction of the markets not the consumers. Violent price swings mark this speculative power and that is what we have seen. Time to get the speculating banks, hedge funds and other big players to have to take possession of the commodity. This will make it much harder for the speculators to control the price of oil.
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TBRR
Champion Author Jacksonville

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Message Posted: Sep 19, 2012 9:46:32 AM

nearly $4 plunge??? more like a trickle down to me considering the high price of Brent. poor choice of words by Reuters.

in god we trust

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paulp24
Champion Author Harrisburg

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Message Posted: Sep 19, 2012 9:46:09 AM

Koch brothers...
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ddgb40
Champion Author Las Vegas

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Message Posted: Sep 19, 2012 9:46:07 AM

Ok
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LoadToad
Champion Author San Diego

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Message Posted: Sep 19, 2012 9:44:33 AM

Looks like somebody is/was playing games.
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gws2980
Champion Author Philadelphia

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Message Posted: Sep 19, 2012 9:43:23 AM

not saying who
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40mpgsaturn
Champion Author Wisconsin

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Message Posted: Sep 19, 2012 9:43:07 AM

We can't win!
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1heatguy
Veteran Author Wisconsin

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Message Posted: Sep 19, 2012 9:41:22 AM

okkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkk
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crep1291
Champion Author Ottawa

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Message Posted: Sep 19, 2012 9:41:02 AM

Gasoline is 5.7c/L (21.5c/gal) in Ottawa today. Back to prices we had before the big jump last week.
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Teddy95
Champion Author Dayton

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Message Posted: Sep 19, 2012 9:40:32 AM

Hmmm...
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ted4636
Champion Author Cleveland

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Message Posted: Sep 19, 2012 9:39:13 AM

what!
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AC-302
Champion Author Los Angeles

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Message Posted: Sep 19, 2012 9:38:27 AM

This has to be due to Robo-Trading.
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SUPERSTEVIEO
Champion Author Quebec

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Message Posted: Sep 19, 2012 9:38:23 AM

??? so??? what now???
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Insuremn
Champion Author Twin Cities

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Message Posted: Sep 19, 2012 9:38:03 AM

Drill here now and put US citizens to work in the oil and gas industries. Stop sending our money to OPEC. Get rid of Obama.
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tttmikeb
Champion Author St. Louis

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Message Posted: Sep 19, 2012 9:37:30 AM

ok
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DesertRat2011
Champion Author Riverside

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Message Posted: Sep 19, 2012 9:36:30 AM

I don't care how it happened just as long as the price goes down :)
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mitchells
Champion Author Montreal

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Message Posted: Sep 19, 2012 9:36:21 AM

Shows you that speculators have the run of the market
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bobdec
Champion Author Miami

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Message Posted: Sep 19, 2012 9:36:18 AM

It will resume its rise soon
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drobbbb
Champion Author Maryland

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Message Posted: Sep 19, 2012 9:36:02 AM

how's that helping me?
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bra0712
Champion Author Arizona

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Message Posted: Sep 19, 2012 9:35:24 AM

K
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puinsai808
Champion Author Honolulu

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Message Posted: Sep 19, 2012 9:34:44 AM

ok
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BEngr
Champion Author Illinois

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Message Posted: Sep 19, 2012 9:33:22 AM

I noticed on this mornings news that oil prices are still falling. Maybe they will continue to fall more yet.
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arnerator
Champion Author Seattle

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Message Posted: Sep 19, 2012 9:33:11 AM

I hope some speculators took a beating on that.
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