Cameron Hanover – Daily Energy Hedger – August 31, 2010

The oil complex was lower on Monday, preventing a three-day rally from extending into a fourth day. While the fundamentals remain overwhelmingly bearish, with inventories now at three-decade highs one could easily describe as being ample to the point of being burdensome, it was not these that triggered Monday’s decline. Instead, it was weakness in equities from that other form of “stocks” – shares in companies – and a decline in the euro that either provided an opening for the fundamentals to work upon the market or just persuaded investors to liquidate their long holdings in oil, which they see not as a commodity but as an “asset.”