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He presented charts showing the growth of the oil futures market, in which investors buy and sell promises to deliver oil at a later date, and claimed that "the increase in demand from index speculators" — his term for institutional investors who buy commodity futures — "is almost equal to the increase in demand from China".
LIZ ANN SONDERS: And hedge funds, and index speculators.
Similar(58)
Speculators speculate more, hedgers hedge more.
Citing testimony given in Congressional hearings, Mr. Chidambaram said the inflow of $250 billion to commodities indexes indicates that speculators have had a big role in the run-up in prices.
A year ago, Mr. Holder named a working group on oil and gas price fraud, telling it to "explore whether there is any evidence of manipulation of oil and gas prices" and to evaluate "the role of speculators and index traders".
Speculators will speculate.
Though they are not regarded as traditional speculators, the biggest index funds sometimes account for almost 30percentt of the trading in natural gas futures on the New York Mercantile Exchange, and collectively the funds sometimes account for well over half of such trading.
What's more, large speculators in the Russell 2000 Index of small-cap equities were at their highest net short position since June 2005.
The report recommends that the commission revoke those waivers and subject index traders to the limits imposed on other speculators.
The proposed rule changes would have raised the size of the market stake that financial speculators could hold, and exempted commodity index funds from those higher limits.
The index has since dropped by 4%, partly because speculators have been selling commodities to cover losses in other financial markets.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com