Daily Energy Hedger – September 26, 2011
The oil complex was hammered at the end of last week, or on Wednesday and Thursday, as funds seem to have suddenly decided that the world is headed into recession again. The markets seem to have lost any faith that governments are capable of leading us back to solid growth here. And, judging by the decline in open interest, which started more than two weeks ago, this judgment had been a long time in the making. It now seems that funds have been losing patience for the last several weeks. Selling knocked prices down when they failed to make new highs.