> On the original topic, I don't get how
> changing the weighting of gasoline in
> the GS commodity index would affect the
> crude oil price, which is $15 off its
> highs. It might affect the relation
> between gas and crude prices, but no
> more. Maybe I'm missing something.
My understanding is that, under the basic premise that gas and crude prices are highly correlated, lowering the weight of gas in the GS index is read by followers as a signal by the leader that oil futures in general are to be shorted. In the short run, the dynamics in a market can be perverse. Small changes in expectations can unleash large consequences. Asset prices overreact. Etc. If GS doesn't have much to lose (according to Peter Stojan) and there's some large political gain, then why not? Again, I'm not agreeing or disagreeing with this. Just trying to make sense of it. If oil prices go back up in mid November, then this "conspiracy theory" will look more plausible. No? I mean, the fundamentals of oil supply and demand are not likely to change much in a few months.