The Downside Of Speculatin'

Trading in energy futures was halted briefly this afternoon as prices plunged on inventory data. Unexpectedly.

New York RBOB gasoline for June fell by more than 7 percent to hit a limit down in the contract, a move that sparked a 5-minute halt in trading across the energy complex midday Wednesday.

I won't hold my breath waiting for Obama to call on Eric Holder to investigate the cause of the speculators' losses. Because that's how it works in the real world, even though the left's caricature of the market is:

1) Speculate
2) ???
3) Profit!

Today's EIA data was bearish across the board as both crude and gasoline stocks generated a much larger build versus the consensus

Gasoline demand was down year-over-year as higher prices at the pump cut into demand ahead of the peak driving season. Given this, we believe crude and gasoline prices will likely have to correct further over the near-term to generate stronger demand and reduce inventories from current levels.

Now just hold on one damned minute.

You mean that supply and demand forces might have something to do with the price of gasoline? The deuce you say!

Oh, what the hell. Let's raise Big Oil's taxes anyway. To be fair.

posted by Andy at 01:12 PM

| Access Comments