Oil Price

RogerCO · Post by **RogerCO** » 09 May 2006, 22:56

Tess wrote:It's definitely a recently phenomenon. I think the rise of electronic trading has had a lot to do with it. Crude oil trading is a lot more accessible than it used to be.

Its also tempting to see it as a symptom of a system that is about to go chaotic. That interesting phase between stable laminar flow and chaotic turbulence in the flow...

Post by **mikepepler** » 10 May 2006, 07:24

RogerCO wrote:Its also tempting to see it as a symptom of a system that is about to go chaotic. That interesting phase between stable laminar flow and chaotic turbulence in the flow...

This was my thinking too - I remember the risk analyst guy on the Imposed By Nature DVD saying that markets get unstable when they reach extremities.

RevdTess · Post by **RevdTess** » 10 May 2006, 08:31

There's simply more money moving in and out. Look at the size of the open interest.

Now you can say that's due to disequilibrium if you like...