Cameron Hanover – Daily Energy Hedger – May 12, 2011

It may be over. All of it, everything. The Mississippi River flooding was a red herring, a freak of Nature that diverted attention away from the major influences in this market. Those influences are, and have been for two or three years now, the Federal Reserve’s policy on interest rates and the impact they have on the US dollar. With QE2 (Quantitative Easing II) ending, the major policy that has shaped oil prices is winding down. The leading factor behind a weaker dollar is ending and the bull markets in stocks and commodities are all at risk here. Gasoline prices led oil prices lower today.