When the price of oil climbs from just under $60/barrel to over $140 barrel in a relatively short period of time, investors, end-users, and lawmakers will often try to look into the cause. The big question, of course, is what impact have hedge funds and institutions had on the oil markets?

According to the Wall Street Journal , several Washington lawmakers are going to reveal a report today(“The Accidental Hunt Brothers”) which claims that speculators were to blame for the run-up( and subsequent sell-off) in oil prices.

“In mid-July, pension funds and other big institutions “began a mass stampede for the exits” of a range of commodities, the report said, partly as a result of several bills that would force a cutback in these investments. In one commodities fund, investors sold futures contracts linked to about 127 million barrels of crude oil.”   Read Full Article

We shall see what the CFTC report coming out later today will say about this matter.

Balarie Capital Management works with Pensions, Endowments, and Insitiutional Investors regarding their commodities and managed futures investments. Please contact us or access our managed futures database for more information.

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.  THERE IS SIGNIFICANT RISK OF LOSS WHEN TRADING FUTURES AND OPTIONS. ALWAYS REVIEW A DISCLOSURE DOCUMENT BEFORE INVESTING IN ANY MANAGED FUTURES PROGRAM.