A study by Research and Markets has examined the entry of hedge funds and investment banks into the energy industry, specifically energy trading.
In recent months, speculation on the part of the hedge funds in energy commodities markets has been blamed in part for the increase in crude oil prices to over $50/Bbl, according to the company. Its study examines who the hedge funds are, what they are actually doing, and what the impact of hedge funds entering energy trading will be for the industry and beyond.
Over 200 hedge funds have been identified by the study and when combined with the activities of the proprietary trading desks of the investment banks, this new surge of speculative trading activity is bringing the financialization of the energy markets closer to reality.