Energy investments lure hordes of newcomers

The search for the best return on investment has led hordes of big Wall Street players into energy markets, a trend that shows no signs of abating as a rally in oil prices pushes ahead.

Investors are using various means of turning the high price of oil to their advantage. Some are taking positions in actual crude, gasoline and heating oil contracts on futures markets like the New York Mercantile Exchange.

Other investment is more traditional, such as buying shares of energy companies, mutual funds and hedge funds.

But the increased presence of commodity pools and other speculators has many long-time futures traders blaming the newcomers for the volatility and rising price of crude oil as well as gasoline and heating oil.

Reuters