What was a “shock” to oil traders was the magnitude of the distillate drawdown in last night's API. We knew that supply was tight in the Midwest as farmers are deep into the harvest — but a drop of 6.2 million barrels?
As oil prices soared to a record high in 2008, traders, politicians and regulators were stunned as oil made a move of historical portions. Now oil traders are cheering the overturning of position limit rules.
A U.S. district court today vacated a controversial Commodity Futures Trading Commission (CFTC) rule that would have set position limits on derivatives tied to 28 physical commodities, and remanded the rule to the agency.