Stephen Schork
Editor of
"The Schork Report"

Spot gasoline is dear. The market is screaming at the refiners to start processing gasoline and sell into the backwardation. Failure to take advantage today and the refiners run the risk of chasing the curve lower as we move out along the x-axis… not to mention they risk of the wrath of media savvy politicians should downstream inaction lead to higher prices at the pump for Americans through this summer and into hurricane season.

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Carbon Report: One Battle Over - The U.S. House of Representatives’ Energy and Commerce Committee approved new climate change legislation before the Memorial Day recess. A Bigger Battle Ahead: While committee Chairman Henry Waxman was successful in getting the bill thru his committee in eight weeks, a much bigger challenge lies in getting the bill passed by the full House and the Senate.

As The Schork Report has analyzed, Senate Democrats chose not to put climate change on a filibuster-proof fast track, so any legislation will have to get 60 votes for passage. Many moderates in the House want to see action in the Senate before they vote for the bill. Climate change and energy independence are not the top issue for most Americans who are struggling with the recession and concerned about healthcare.

There is also strong opposition to the bill by oil and gas producers and manufacturers. Concessions used to win the support of some members in energy producing and manufacturing states could alienate liberals. Those concessions could involve domestic drilling and more emphasis on nuclear power.

International Impact: The Obama administration is hoping to get legislation passed this year. In December the President will attend a global confab on climate change in Copenhagen. Without a clear message that the U.S. is taking serious steps to curb emissions of greenhouse gases, it will be difficult for Mr. Obama to push the world’s biggest emitter of carbon, China, to take action.

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Stephen Schork is the Editor of, "The Schork Report" and has more than 17 years experience in physical commodity and derivatives trading, risk systems modeling and structured commodity finance.