Hello and welcome to Elements, our daily energy and commodities newsletter. Bloomberg Opinion’s Javier Blas explains how some US lawmakers want the government to become an oil trader — and why that wouldn’t be such a good idea. If you haven’t yet signed up to get Elements direct into your inbox, you can do that here.
In the minds of some American politicians, making money in the oil market is as simple as “buy low and sell high.” Easy-peasy. One wonders why nobody thought of that sooner.
Congressman Frank Pallone, the New Jersey Democrat who chairs the House Energy and Commerce Committee, is so sure about the trading strategy he introduced a bill titled “The Buy Low and Sell High Act” to turn a portion of the US Strategic Petroleum Reserve into some sort of oil hedge fund run by the American government.