Traders Split on Knife-Edge Oil Outlook
Source: Financial Times, Javier Blas (9/15/11)
"Hedge funds expect a drop, while most physical traders are betting on rising prices. The battle is changing the oil market's structure."
The crude oil market is witnessing a titanic battle: some macroeconomic hedge funds are betting on a drop in prices yet most physical traders are placing wagers that prices will rise.
The battle is filtering into the structure of the oil market.
The headline price for Brent crude, the global benchmark, has weakened to trade at around $112 a barrel, on fears that a default by Greece would trigger a global recession and cut oil consumption. Earlier this year, Brent prices surged above $125 a barrel after the start of the crisis in Libya. . .View full article