Geoff Considine

Energy Sell-Off Overdone

Well, one reason for this decline may be that a range of institutional investors have been dumping energy commodities in fear that congress will ban their investments here. There is also probably a tactical issue here---a lot of people smelled a sell-off and wanted to be first out the door. As commodities drop, people sell off energy firms. It is always good to remember that energy firms tend to be high volatility--comes with the territory. Clearly the rate of gains in energy commodities was too high to be sustainable, but the long-term narrative for sustained high demand for energy in the developing world is hard to dicsount.