Energy OverView September 29, 2014

Brent and WTI oil prices are lower to start the week, buffeted by further gains in the US dollar versus other major currencies; the Dollar Index hit a multi-year, nearing 86. Long bets by speculators in Brent futures have fallen 80% since June, and have flipped into a record short position. That kind of stampede either argues for a round further losses or a market bottom. The contrarians will choose the latter for sure.