Cameron Hanover – Daily Energy Hedger – August 20, 2010

Oil prices were down steeply on Thursday, with the selling developing as soon as the latest unemployment figures were released. Prices had been higher in overnight trading, in response to higher equities levels in Asia, on rumors that China will introduce fresh stimulus. Traders were also looking at oversold pressures early this morning.

All of that changed with the release of this week’s unemployment report. It showed an increase of 12,000 in initial jobless claims, and expectations had been for a decline of 4,000 to 6,000. This caught everyone leaning the wrong way and equities collapsed term higher.