US intervention in oil futures would be 'biblical disaster'

[SamuelTheThird]

https://www.ft.com/content/823657f2-4f8b-4325-88db-fbbdba6c9e17

The head of CME Group has warned the Trump administration it risks a “biblical disaster” if it attempts to lower oil prices by intervening in derivatives markets during the war with Iran.

Terry Duffy, the chief executive of CME Group, which runs the exchange where US oil futures trade, told a conference this week that it would erode market confidence if the US government stepped into the futures market in a bid to curb the rise in crude.

“Markets do not like it when governments intervene in pricing,” Duffy told the conference in Boca Raton, Florida. Such a move would risk a “biblical disaster” if investors lost confidence in markets to set the price of critical commodities, he said.

Duffy’s comments followed a report by Reuters that suggested the US Treasury was considering measures to lower oil prices, including intervention in futures markets

[Kid Berwyn]

1. Sounds like a Jared idea.

Soon to be backed by the US taxpayer.

[Captain Zero]

2. Shouldn't have told Trump not to do something

Because now he will be damned and determine to do it especially if he thinks high prices makes him look bad and he has among all his other mental maladies he has oppositional defiance disorder it's a Hallmark it's a Hallmark symptom of all the s*** he's got wrong with him and he's constantly being oppositionally defiant... So this is probably not going to go well. And we need the 25th Amendment so damn bad

[GreatGazoo]

3. That they are considering such extreme measures contradict their

PR about the war being over soon and having no long term effects.

[gulliver]

4. Interesting.

If they started buying low strike price call options on oil, I'd start to think about buying them too.

[Bluestocking]

5. Can someone explain why this is a bad thing

Governments own market assets.

[Renew Deal]

6. I'm pretty sure they are manipulating the stock market as well.

Market performance has seemed inflated for months. I think we're in a Greece type situation where eventually everyone will find out that the government was cooking the books. Bessent just hasn't figured out how to manipulate the oil market yet.

The most important thing for Trump and his people is for the world to not figure out that his actions have significant negative consequences. This is especially true for oil but also for deportations and tariffs.

[mike_c]

7. that'll get TSF's attention

Did he say "biblical disaster?" WOMP WOMP

[Norrrm]

8. "Intervene" - Sounds like a five-year-plan.

[Blue Full Moon]

9. If George W Bush hadn't changed the law this would not have happened.