Sriram Karra wrote:
On 5/16/06, Kiran Jonnalagadda <[EMAIL PROTECTED]> wrote:
I don't get this business. Exactly how does First Fuel Banks stand to
gain if customers only withdraw fuel when regular market prices are
higher? Are they banking on fuel prices crashing?
First of all, from looking at their website, it looks like a prepaid
service. So they are operate with a good amount of float.
More significantly, they take as much risk as they are comfortable
with, and beyond that buy insurance from others who are willing to
sell it in the form of Oil futures.
IAWTC.
Closer home the commodity exchanges are beginning to look up.
http://www.financialexpress.com/fe_full_story.php?content_id=127189
India may become ‘price setter’ globally, says Lamon Rutten
MUMBAI, MAY 15: India could be a “price setter” and not a “price taker”
in the next couple of years as global prices have started taking cues
from Indian commodities markets, said Lamon Rutten, the joint managing
director appointed by Multi Commodity Exchange.
India has the potential to be an official price setter in oilseeds, as
the Indian prices have started impacting global oilseed prices, said
Rutten. He said India, in future, could have a big impact on crude oil
prices as the exchanges here have successful energy contracts, which is
missing in the Middle East countries, despite being the producers.
[...]
