CONCLUSIONS:
Energy market sentiment is extremely positive, posing the possibility that prices, especially in the futures market, could fall precipitously if energy fundamentals prove not to be as compelling as the market expects – triggering a flood of new near-term supply currently held in storage awaiting higher prices.

There is evidence that the spike in futures prices for crude oil last week was caused by a wave of buyers closing out their losing short positions (bets in the market that oil prices would fall from current lofty levels after recent sharp gains), suggesting recent price gains may be temporal.

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