Publications: Notes at the Margin

Crude Oil: GameStopped? (September 25, 2023)

 

This Notes at the Margin focuses first on the impact of “meme investors” on the oil market. A “meme stock” is one that gains inordinate popularity among small retail investors, usually after being touted widely on social media. GameStop, for example, was an equity that avoided bankruptcy in 2021 and 2022 primarily due to the actions of an enthusiastic YouTube^® blogger. In similar fashion, crude oil prices are being pushed higher today by meme investors.

 

We conclude with a discussion of diesel, particularly Russia’s decision to limit exports. We note that there seem to be no meme investors in distillate yet and little price impact. However, gasoline prices are being depressed as refiners substitute light crudes for the preferred distillate-rich heavier crudes.

 

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