Publications: Notes at the Margin

CME: Exterminator of US Energy Independence (July 6, 2020)


In its search for increased revenue, the Chicago Mercantile Exchange (CME) has sacrificed the US independent oil industry (the frackers) that achieved the seemingly impossible goal of freeing the United States from importing oil. Chinese citizens who are legally barred from gambling in casinos were offered the opportunity to bet lawfully on US futures markets. The WTI contract became the instrument of choice. The April 20 price debacle caused by the CME's negligence has made the contract useless for hedging. Bluntly, the contract has been neutered. As a consequence, the cost of hedging will increase, further constraining efforts by US independent producers to survive financially. The possibility of sustained domestic energy independence and US "energy dominance" has been lost to the CME's greed and incompetence.


To receive the full report along with futures issues of Notes at the Margin, please Contact Us or send us an Information Request for subscription information.