Strange things have been happening in oil markets of late. Classic price signals such as falling inventories, economic quagmire in the OECD and slackened growth in emerging markets all failed to quell a bull market on the way up to July, while geopolitical flashpoints, storms looming over the Gulf of Mexico, and the persistence of tight markets are failing to stop its bearish decline on the way back down. This raises a number of ‘inconvenient’ truths as to the self selecting nature of ‘fundamentals’ in play at any given time in oil markets.

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