2009-04-09 21:30:49  Oil prices have dropped 60% since the peak in June. While the fall was welcomed at the beginning, it became a source of concern with the financial crisis. While the consensus thought the worst was over in the long ascent for oil prices, we believe this was only a momentary pullback. In fact, we believe the credit crisis and deleveraging process has affected hedge fund strategies forcing many positions to be closed at any price. This has pushed commodity and energy prices beyond the theoretical price normally associated with a recession scenario. Major exporting countries have production, consumption and export trade off problems with the net export factor being one of the most significant.