Oil prices surged 2.6 percent on Wednesday after a report from the U.S. government showed an unexpected fall in crude inventories in the world’s largest energy consumer, pulling supplies down from 6-year peaks.
So not only are oil traders not rational (panicking because oil supplies are slightly below their 6 year high). They also aren’t very damn bright.
On the other hand, The St. Cloud Times was a bit smarter:
This year’s Memorial Day is expected to draw a record number of drivers to the roads, according to AAA.
Gail Weinholzer, director of public affairs for Minnesota/Iowa AAA, said 37.2 million Americans will travel at least 50 miles during this Memorial Day weekend. In 2004, 35.2 million people took holiday weekend trips.
So, the AAA expected, the St. Cloud Times expected and most Americans expected an increase in gasoline use, oil companies also expected it and raised their gasoline stockpiles which an intelligent person would expect to mean a decrease in crude stockpiles. Oil traders and analysts on the other hand were surprised by this unexpected event. Oil analysts or the reporters who cover the oil market are apparently working with a soundtrack performed by the Blackeyed Peas.