Yesterday, the blog worried that oil prices were well out of line with fundamentals. It argued that momentum trading, highlighted by MF Global’s energy VP, Mike Fitzpatrick, had created a speculative mania.
Today, it looks as though Fitzpatrick might agree. Quoted in the Financial Times, he notes “As fundamentals come more into focus, it would suggest that there is less real support for oil prices than recent valuations would imply“.
The blog couldn’t have put it better.