Cameron Hanover – Daily Energy Hedger – May 21 2010

Oil prices dropped steeply again on Thursday, as the entire asset structure came under selling pressure again. Traders were also talking about the abundance of crude oil in Cushing, Oklahoma, and about the influence that could be having on Thursday afternoon’s June crude oil contract expiration. As it worked out, June crude was slightly weaker than deferred months, but the expiration occurred within fairly normal parameters – if the recent weakness can be considered normal.