Hedge Funds Gas Price
Hedge Funds Raise Bearish Gas Bets for Warm New Year
The funds and other large speculators cut net-long positions, or wagers on rising prices, by 35 percent in the seven days ended Dec. 21, according to the Commodity Futures Trading Commission’s weekly Commitments of Traders report. It was the largest drop since Oct. 12.
Natural gas has declined 24 percent this year as stockpiles reached record levels for the second straight November. Warmer- than-normal weather forecast for early next month may reduce the demand needed to erode surplus inventories.
“The first two weeks of January, you’re going to see the market turn around from December cold,” said Dave Melita, president and chief meteorologist of Melita Weather Associates in Durango, Colorado. “The snow cover will be melting fast. It will be 20 degrees above average on some days.” Source