Oil Traders Misread Tweet, Make Oil Prices Shoot Up

from the read-slower dept

There have been plenty of complaints about people who jump to conclusions too quickly online, but apparently at times that can actually have a material impact on things. Earlier today, the Israeli Defense Forces (who have been quite active on Twitter) put out a tweet commemorating the famed Yom Kippur war of 1973, in which Israel bombed Syria:
The tweet may have been somewhat ill-timed, and poorly thought-out, given the current "heightened tensions" with Syria. Either way, apparently some oil traders either skipped over or didn't understand the hashtag reference to "YomKippur73" (and the reference to the Soviet Union -- a country that hasn't existed in decades) and interpreted the tweet to mean that Israel was bombing Syria today. And, in response they started bidding up the price of oil. Because twitchy commodities dealers apparently do their pricing based on tweets.

Of course, the article notes that traders eventually realized their mistake... but the price of oil stayed up, rising over a dollar from $110.40 a barrel to $111.50 a barrel, and then continuing to rise a bit (though more slowly) after the mistake was understood. Isn't it great that key pieces of the global economy can change based on some people totally misreading a tweet? Makes me feel so comfortable about the state of the world today.

Filed Under: israel, misreading, oil prices, reading comprehension, syria, twitter


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  1. icon
    ECA (profile), 11 Oct 2013 @ 12:35am

    Re: Re: Re: sORRY

    There are to many middle men.
    Oil corps will tell you, the reason they sell OIL over many other products, is that ITS CHEAP.
    You should understand what a cracking tower does..
    It takes a Liquid as thick as molasses..and coverts it to Liquids, gases, and solids.. by the time they are DONE..its at LEAST 100 to 1.
    Got a refillable lighter..look at the price, and THAt isnt a gallon.
    Propellant in most Spray cans..1oz in 16, and most of the price is in propellant.(look on a shelf to the Straight liquid you MIX GALLONS)
    I wont mention Plastics, roofing, ROAD TAR, and all the rest..
    Even if they sold that 55gallon drum at $1 per gallon, after processing, it would be worth over $5500. they make LOTs more then that. GAS pays for the whole thing and the rest is PURE PROFIT.

    Your electric company SELLS electricity..They MOSTLY dont make it. thats ANOTHER company.
    They sell it back and forth, until it wont go up anymore and have to use it..Then CHARGe the customer for all the games. along with PROFIT.

    If you could BUY direct from the farmer you would pay about $3 for 100 pounds of potatoes..
    Even if you could Buy direct from the original food processor..It wouldnt even TOUCH $0.50 per pound..

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