We continue to see selling as investors move toward safe-havens or prepare to take profits for month/quarter-end. Sentiment has shifted negative on the economy and we expect lower energy trade to prevail in the next week or so. There appears to be a tri-fecta of bearish influences in fundamentals, technical, and macro-economic influences and that usually leads to, in this case decidedly lower prices.
It’s important to remember to view the longer term picture through the day-to-day market “noise.” Short-term things look bearish due to poor economic recovery. If/when the economy takes root, the energy markets will turn with it, thus the importance of long-term hedge thinking/program.