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Seems the liquidation may be ending, but just guessing.

Vitol Reclassified by CFTC as `Non-Commercial’ Trader, WSJ Says

by Alexander Kwiatkowski

(Bloomberg) Vitol Group was reclassified by the Commodity Futures Trading Commission as a “non-commercial” trader, the Wall Street Journal reported, citing people it didn’t identify.

The U.S. regulator changed the status of “one of the largest traders” in July, without identifying the company, the newspaper said. People familiar with the matter have now named the trader as Vitol, according to the Journal.

The change meant that bets by non-commercial traders, or speculators, represented half or more of all outstanding crude oil futures contracts on the New York Mercantile Exchange, the newspaper said.

Vitol hasn’t been contacted by the CFTC or by Nymex with regard to its trading status, a Switzerland-based company official said today by phone, declining to be identified. Vitol remains classified as a commercial trader, the official said.

Vitol “is not in the business of taking large positions speculating on the rise or fall of market prices,” the company said in a May statement on its Web site.


4 Responses

  1. Warren,

    Way to go! You “scooped” the journal by two weeks! Readers of your blog knew it was Vitol back in the first days of August. Keep up the great work!

    -Mike Norman

  2. thanks, first time ever.

    waiting for the fbi to show up, or maybe the kgb…

    better announce my candidacy for president for 2012 here and now for protection

    got your vote, maybe?


  3. tell me about it!

    the ‘taylor rule’ rate keeps going up even as the fed stays on hold.
    never thought the mainstream would let this happen.

    gdp is muddling through as expected, even without housing, as i expected.

    inflation is ripping as expected.

    never thought a Fed would respond this way.

    hard for me to accept they will continue to keep rates here as inflation climbs.

    even though i know higher rates only make inflation worse, fed has made no indication of that thinking.

    they are keeping rates low due to fear of a gdp collapse due to financial sector issues.

    i thought they’d all be more like fisher who is far more representative of the mainstream.

    i’ve been wrong on the fed, and continue to be wrong as with gdp muddling through and inflation ripping still seems to me the hiking pressure is building rapidly.

    but if they really don’t care about inflation they could easily cut rates

    i think they do care a lot but have been even that more afraid of financial collapse than i have been guessing.

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