A Giant Bet Against Natural Gas Is Blowing Up

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dealmaker

Hedge funds, money managers went bearish before prices shot up 25%
unds, money managers went bearish before prices shot up 25%
im-105615

Forecasts for muggy weather in September have pushed prices for natural gas higher. Photo: Ralph Wilson/Associated Press
By Ryan Dezember
Updated Sept. 10, 2019 5:00 pm ET

A popular wager in the energy markets is backfiring.

Hedge funds and other money managers in August built up a big bet that natural gas prices would decline—their most bearish position in the futures market in over a decade—only to have prices shoot up 25%.

Prices usually weaken when summer subsides since there is less demand to generate electricity for air conditioners. Forecasts for a steamy September have pushed prices higher, though.

https://www.wsj.com/articles/a-gian...shareToken=stf5ec8ec077104167bc8691f83bf09c63
 
So, these were the people on the other side on my long NG trades... I don't have that much money as them. Else I would have made a nice bundle.. hehe
 
What a bollocks. Someone lost and another one made a killing. It's just that the media imbeciles don't get it that positioning just shifts back and forth between hedged and speculators.

dealmaker said:
Hedge funds, money managers went bearish before prices shot up 25%
unds, money managers went bearish before prices shot up 25%
im-105615

Forecasts for muggy weather in September have pushed prices for natural gas higher. Photo: Ralph Wilson/Associated Press
By Ryan Dezember
Updated Sept. 10, 2019 5:00 pm ET

A popular wager in the energy markets is backfiring.

Hedge funds and other money managers in August built up a big bet that natural gas prices would decline—their most bearish position in the futures market in over a decade—only to have prices shoot up 25%.

Prices usually weaken when summer subsides since there is less demand to generate electricity for air conditioners. Forecasts for a steamy September have pushed prices higher, though.

https://www.wsj.com/articles/a-gian...shareToken=stf5ec8ec077104167bc8691f83bf09c63
More...
 
Any time the media can whack the dumb and often evil Hedge Fund Mgrs it makes good headlines. I know many traders in the physical energy market having the best years in a decade, and they rarely speak to media outlets.
 
I was hunting for news on this one, but OP's article fills out the reason, I took a bet on this one two days ago, expecting it to be a wild ride, I don't normally track NG prices but will now, just another commodity in a list to add to.
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Hope I don't get burnt.
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dealmaker said:
Prices usually weaken when summer subsides since there is less demand to generate electricity for air conditioners
More...

NG has a strong seasonal tailwind that kicks in in Sept as fall approaches, and the same applies to the Russell 2000 which has clearly gone parabolic.


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Jerry Jones has over $1B invested in Comstock shale natural gas fields. Has been increasing his stake earlier in 2019.

Makes sense. Demand for physical NG is just getting stronger and stronger as more and more coal fired power plants have already made the conversion investment. It's already a huge sunk cost.

And Mexico is well on their way to converting coal to NG - peaking in 2029.
 
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