Hedge Funds Natural Gas Trades
Hedge Funds Cutting Bets on Rising Price of Natural Gas
Hedge funds slashed their bets on rising natural gas to the lowest level this year as prices fell, a sign the fuel may repeat last year’s 19 percent August slide during a so-far quiet hurricane season in the Gulf of Mexico.
Hedge funds and other large speculators cut their bullish bets by 23 percent in the week ended Aug. 10, the Commodity Futures Trading Commission reported. Natural Gas has declined 15 percent this month, dropping to $4.206 per million British thermal units at 1:05 p.m. on the New York Mercantile Exchange.
Investors retreated from gas markets this year as prices declined 22 percent amid forecasts that stockpiles will be near record highs by the end of October. Demand for the fuel will be slow to recover as consumer confidence hovers near an eight- month low. Source