Oil, Gasoline Extends Losses After Brief Trading Halt
Oil prices tumbled 4 percent on Wednesday as U.S. gasoline futures plunged limit down, triggering a brief halt in trade on the New York Mercantile Exchange.
Gasoline traded down 25 cents at midday in New York, a move that stopped trade on NYMEX crude, heating oil and gasoline futures.
Losses carried on as trading resumed with a new limit of 50 cents. Prices completed erased gains from Monday and Tuesday, when traders bid up gasoline on fears that flooding would hit Gulf refiners.
Further weakness came from U.S. inventory data from the Energy Information Administration, which showed the first build in gasoline inventories in twelve weeks.
Reminder, this is a government engineered decline. Margin requirements are squeezing the speculators.