NEW YORK (Reuters) – Institutional investors expected to pour another $25 billion into commodities this year are steadily building new long positions in energy markets amid selling pressure from hedge funds and other speculators.
An infusion of cash by pension funds investing passively in commodity indexes helped oil recover last week from a weak start to 2007, Lehman Brothers said in a report issued Friday.
It said the new investments could presage the additional $25 billion that such investors were expected to put into long-only investment strategies this year.
