Liam Denning, Columnist

Trump’s SAFE Fuel Rule Is Anything But

Backtracking on efficiency will leave the U.S. more exposed to oil markets and climate change.

President Donald Trump.

Photographer: Bloomberg/Bloomberg
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The Trump administration’s proposal to relax vehicle pollution standards got me thinking about the oil price. I don’t mean where it’s going, but what it is.

Those Nymex numbers flashing on the screen aren’t just the cost of oil. They are also the cost of insurance. Oil futures are how producers and users, aided by the ample liquidity of speculators, manage their exposure to everything from how much snow falls in New England to the occasional (alleged) exploding drone in Caracas.