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Don't Blame the Algos for Oil Market Swings, Economist Says

  • Phil Verleger says Christmas Eve drop was led by 3-way calls
  • Booming U.S. fracking industry leads to increase in hedging

Don’t blame the algos for crude oil’s price swings, according to one economist.

“This is not algorithmic trading by speculators," Philip Verleger, president of energy consultancy PK Verleger LLC, said in a Bloomberg Television interview Thursday. “This is hedging of financial obligations to the people who are producing all this oil.”