The natural gas futures market was abuzz last week over an analyst’s comments that growth in the United States Natural Gas Fund (UNG) might be responsible for the rebound in prices over the last month despite the lack of supportive fundamentals. While some analysts were claiming that the exchange-traded fund (ETF) might be cornering the market because it allegedly is holding title to as much as 80% of the June contract’s open interest on the New York Mercantile Exchange (Nymex), other analysts and traders were less convinced the story, and/or the percentage, could be true.
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Natural Gas Fund’s Impact on Futures Prices Debated
The natural gas futures market was abuzz Thursday over analyst’s comments that growth in the United States Natural Gas Fund (UNG) might be responsible for the rebound in prices over the last month despite the lack of supportive fundamentals. While some analysts were claiming that the exchange-traded fund (ETF) might be cornering the market because it allegedly is holding title to as much as 80% of the June contract’s open interest on the New York Mercantile Exchange (Nymex), other analysts and traders were less convinced the story, and/or the percentage, could be true.
Saracen Energy’s ‘Unfavorable Positions’ Seen as Boosting Gas Futures
Energy traders were abuzz Friday as reports circulated that Houston-based hedge fund Saracen Energy Partners LP is the latest to join the ranks of organizations that have recently recorded large losses on wrong-way trades in the natural gas futures market. Some traders pointed to the fallout as explanation for this week’s spike in natural gas futures.
Saracen Energy’s ‘Unfavorable Positions’ Seen as Boosting Gas Futures
Energy traders were abuzz last Friday as reports circulated that Houston-based hedge fund Saracen Energy Partners LP was the latest to join the ranks of organizations that have recently recorded large losses on wrong-way trades in the natural gas futures market. Some traders pointed to the fallout as explanation for last week’s spike in natural gas futures.