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Oil Falls Out of Bed

Blimey!

Prices had been a little spicey lately, the combined effect of OPEC's grumpiness, Iran upping its nuclear rhetoric, and a perception of Nigerian instability.

Commodity strategist Michael Guido thinks investors are simply getting tired of placing losing bets on various nightmare scenarios like devastating hurricane scenarios, massive production cuts, or World War III, none of which have come to fruition.

"Too much money has been lost on what-if scearnios," Guido said, and that has pushed many institutional investors, including hedge funds and pension funds, to the sidelines of the energy market.

Another factor influencing Thursday's selloff of nearly $2 a barrel is that the front-month contract is set to expire Friday.
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In its latest weekly report, the Energy Department said the nation's inventory of natural gas grew last week by 5 billion cubic feet to 3.45 trillion cubic feet, or 7.4 percent above the five-year average for this time of year.

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Oil Falls Out of Bed

Blimey!

Prices had been a little spicey lately, the combined effect of OPEC's grumpiness, Iran upping its nuclear rhetoric, and a perception of Nigerian instability.

Commodity strategist Michael Guido thinks investors are simply getting tired of placing losing bets on various nightmare scenarios like devastating hurricane scenarios, massive production cuts, or World War III, none of which have come to fruition.

"Too much money has been lost on what-if scearnios," Guido said, and that has pushed many institutional investors, including hedge funds and pension funds, to the sidelines of the energy market.

Another factor influencing Thursday's selloff of nearly $2 a barrel is that the front-month contract is set to expire Friday.
...
In its latest weekly report, the Energy Department said the nation's inventory of natural gas grew last week by 5 billion cubic feet to 3.45 trillion cubic feet, or 7.4 percent above the five-year average for this time of year.