Krutikhin: "The game of the holders of futures on the market has nothing to do with the real situation"

Krutikhin: "The game of the holders of futures on the market has nothing to do with the real situation"

27 November 2020, 11:21
On the Sotnik TV YouTube channel, a well-known Russian economic analyst, oil and gas market specialist Mikhail Krutikhin spoke about what is happening on the hydrocarbon market during the second wave of the pandemic, and also commented on a number of topical issues from other areas.

“I look, everything went briskly, the price of Brent oil is above $ 45.5. But we must take into account that this is a very sensitive period for those who play futures contracts. That is, there is an expiration of futures contracts and before that you need to play well, you need to inflate this price.

In order to do this, all sorts of messages are launched, to which the so-called algorithms in the market react. For example, reports that the Yemeni rebels launched some kind of rockets in the direction of the oil facilities of Saudi Arabia. Immediately, the algorithms react to this and rise somewhere.

And if you look at the fundamental indicator, that is, supply and demand, then wherever you look, you can see that oil should become cheaper, because demand, by all indicators, by which it is possible, it will soon lag so far behind the supply that there is nowhere to go at all.

We see new discoveries of cheap oil, we see that Libya is increasing production, we see the revival of shale production in the United States, and much more.

But the market plays by different rules.

And in this case, we see the play of the futures holders. There are about 50 large players, without even saying a word, during the period of each expiration, they launch some news and play well, so that they can drop someone on this market, somewhere to cut off additional profit for themselves - both for a rise, and to fall, but it has nothing to do with the real position in the market.

...We have bulldozers crushing good food, leaving the same hospitals and orphanages without normal food.

This is, of course, a shame and disgrace.

Well, recently I heard from one of the economists that this had a "very positive" effect on Russian agriculture, which increased its production and now we are exporting, God knows, how much flour and grain.

But on the other hand, I turn on the news in the morning, and they say: well, sorry, our bread, unfortunately, is made from grain of the third category.

And, and so, I think why we have some foam-rubber bread in stores for sale, without the smell of bread!

The first and second categories should go for pasta and bread, and the third category - from it, of course, you can drive vodka, you can feed cattle. But in this case, we see that the population receives bread from flour of the third category. What then can be said about the interests of the population?

How else will we respond to any sanctions? Let's punish our own people.

...As for the statements of the head of state about the bunker. These are the last trump cards.

Yes, we have nuclear weapons. We can apply it, he has already spoken about this several times (Putin - noted by Novye Izvestia).

Yes, it is affecting ears and minds around the world.

Perhaps some other sanctions would have been imposed against Russia, like against a country that encourages terrorism, participating in hostilities with its mercenaries, contrary to the Criminal Code of the Russian Federation, in Africa, in Syria, in Libya, whatever else - but the presence of this, it is not known, in what state of the nuclear weapons, is hindering.

And the president does not hesitate to remind about this in order to prevent any additional measures against his regime.

You can listen to the full version of the conversation with Mikhail Krutikhin here.

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