Derf's Grotto

[fung_derf]

Ð.....A Giant Bet Against Natural Gas Is Blowing Up:
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%. Analysts suspect that buying by speculators hoping to cover up errant bets that prices would fall are sending prices even higher than weather forecasts warrant. 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. Exports and consumption by power plants have run at or near records this summer. The glutted market has needed every bit of added demand to sop up production that notched a fresh high in May and wasn’t far off another in June. WSJ.com