Hedge funds are pulling out of oil as price volatility becomes excessive. Oil trading activity has fallen to the lowest level in seven years. The volatility is even impacting other industries as businesses which normally use oil hedges to secure price stability shy away from the practice. Price volatility is a trader’s bread and butter, but in oil, volatility is becoming excessive, pushing traders away and making life harder for a lot of businesses that normally use oil hedges to secure some price stability that is vital for their operations. This is according to a Reuters analysis that notes oil prices have become so wild in their everyday swings that the usual suspects, such s hedge funds, are quitting the oil market in droves, with activity there falling to the lowest in seven years. It appears, then, that volatility is only a good thing up to a point, and […]