Investors Start Doubting Oil Rally After Failure to Top $55 - Bloomberg:
"The oil market’s failure to break out of the tightest range in more than a decade is sapping investor interest. After hitting a record high last week, hedge funds reduced wagers that U.S. oil prices would rise as concern grows that the market is again becoming vulnerable to a drop. Earlier bullish sentiment was based on optimism that OPEC production cuts would ease supply gluts. Now record U.S. crude stockpiles are raising doubts about that outlook. "They’ve gone so far on hopes and dreams," Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts, said by telephone. "I’m worried they’ve overdone it, since we haven’t seen much happen with measures that would support the market -- i.e. inventories.""
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