What's Moving the Oil Markets?

•IPE Brent futures in London traded higher early Tuesday as funds moving out of long positions slowed following the $3.76/barrel collapse on Friday and Monday amid a broad-based selloff.

•Fear over inflation and high commodity prices; impact on economic growth and crude oil demand sparked a retreat in the price of global commodities.

•Concerns over economic growth was the main factor causing the recent collapse in oil prices. "General sentiment, I think, a slide in most financial markets and people are suddenly risk-adverse," a market source said.

•Previously bullish sentiments in the industry, such as the strength of gasoline and demand for gasoline and global demand for crude have been replaced by bearish elements after the International Energy Agency shaved its oil demand forecast and high gasoline priced dented demand in the US.