Wednesday, October 04, 2006

As Hedge Funds Retreat, So Do Energy Prices

Many hedge funds are fleeing the energy markets these days. Are they pushing oil prices down in the process? Put more bluntly: Can we thank Amaranth and its ilk for cheaper visits to the gas pump?

Quite possibly, says BusinessWeek. This question is the flipside of one that began four years ago, when energy prices started to rise, and some people started blaming hedge funds — investment firms that cater to wealthy and institutional investors — along with other big players like mutual funds and professional traders.

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