Cameron Hanover – Daily Energy Hedger – September 2, 2010

The oil complex came charging back on Wednesday, propelled by a surge higher in equities. The DJIA gained 254.75 to finish the day at 10,269.47. According to Capital Economics (CE), “The financial markets have decided to ignore the negative news that private employment may have contracted in August and are concentrating on the unexpected rebound in the ISM manufacturing index last month.” The markets also ignored oil market fundamentals from the Department of Energy (DOE) in its weekly statistical roundup. To make a long story short, investors jumped over a number of obstacles to respond to the one piece of bullish news out of a slew of bearish factors.