Reply to Chatter by traders/analysts Scott Bessent is using the US treasury short oil futures to reduce oil prices

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote] 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.
…
But wild oil price moves in recent days have prompted speculation among energy traders that the Treasury may have already intervened in futures markets. On Monday, Brent crude oil leapt to almost $120 a barrel before reversing sharply to fall back below $100.

Tim Skirrow, head of derivatives at Energy Aspects, said the consultancy had been fielding calls this week on whether the government was behind a series of large unexplained trades in recent days.

“We were being pushed by clients as to who the big seller was,” Skirrow said.

“The speculation was that it could be from the US Treasury,” he added, noting that the government has previously intervened in other markets, such as currencies[/quote]
https://www.ft.com/content/823657f2-4f8b-4325-88db-fbbdba6c9e17

Another from Mr Global
Is US secretly shorting oil markets

https://youtu.be/toFdk3fS6_w?si=9AxgFlE7MQ0rEQr5

If this is true there will be a short squeeze and the US would lose billions. [/quote]

Is it actually possible to short squeeze the government?  Doesn’t that depend on the other party running out of money?[/quote]

Can the US absorb a trillion dollars hit or would they just way away?[/quote]

I’m not an expert, but I thought a short squeeze happens because the short seller has to move to cover when the price rises.  The covering then pushes the price higher.  A normal short seller has to cover because they can’t sustain the potential greater losses.  But the treasury can just wait it out and pay the borrowing costs because they have effectively infinite money.  Right?[/quote]

Well the FT thinks otherwise.[/quote]

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