Cameron Hanover – Daily Energy Hedger – September 8, 2010

Oil prices were lower on Tuesday as investors pulled back on risk appetite plays and put their money in so-called “safe-havens” like the US dollar. That, in turn, put pressure on the euro, which has been one of the assets that oil prices have followed fairly closely. The other outside influence that has had a consistent impact on the price of oil has been the stock market, and that was lower as well on Tuesday. After a strong showing late last week, the DJIA dropped 107.24 on Tuesday to close at 10,340.69. As we have noted here at length, the oil market fundamentals are just not bullish enough on their own to justify existing price levels – far less are they sufficient to propel prices higher.