What do you do in an election year to counter rising gas prices? Well, the Obama administration announced a plan to rein in oil speculation,which mostly amounted to increasing the staff and improving the technology used by the government to monitor the market. That actually got some supportive comments in the industry, although there were some predictable political potshots.
But provisions to increase margin requirements for oil traders has some thinkingthe market could get even MORE volatile.
“In the case of crude oil, the prices paid in the market reflect underlying conditions that range from basic supply and demand to geopolitical threats and monetary policy, just to name a few,” John Kilduff, an oil expert and CNBC contributor, wrote in a guest blog for us.“So, to paraphrase, the fault of the high gasoline prices lies not with the speculators, but with ourselves.“
Following news of strong corporate earnings reports and as worries about Europe eased, U.S. stocks rallied Tuesday with the Dow Jones industrial average adding over a 194 points to push the blue chip index back above 13,000.