From past experience, raising the margins for any commodity is usually the last tactic implemented by the boyz and is a sign of desperation. With the printing presses on cruise control, such action will only provide a minor dent to crude prices.

Regards - VHF

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NYMEX to raise margins for crude, related futures

Tue May 6, 2008 10:25pm BST

NEW YORK, May 6 (Reuters) - The New York Mercantile Exchange said on Tuesday it will increase margins for its crude oil and related futures contracts, beginning at the close of business on Wednesday.

Margins for the crude oil, crude oil calendar swap, and crude oil financial futures contracts will go up to $7,250 from $6,500 for clearing members, to $7,975 from $7,150 for members and to $9,788 from $8,775 for customers, NYMEX said in a release.

Margins for the NYMEX miNY crude oil futures contract will rise to $3,625 from $3,250 for clearing members, to $3,988 from $3,575 for members and to $4,894 from $4,388 for customers.

Margins for the NYMEX MACI index futures contract will increase to $1,450 from $1,300 for clearing members, to $1,595 from $1,430 for members and to $1,958 from $1,755 for customers.