Irrational

“Irrational exuberance” is the way at least one energy trader classified Monday’s explosion higher in natural gas futures values. In spite of bearish fundamentals, the July contract jumped 41.4 cents higher to close at $4.249 as some market experts pointed fingers at fresh speculative money flooding into commodities.

In what might have been a bit of “irrational exuberance,” natural gas futures shot higher Wednesday following Federal Reserve Chairman Alan Greenspan’s testimony before the Joint Economic Committee in which he expressed concern over high natural gas prices and tight supplies. Local traders led the rally at Nymex, which propelled the June contract to a $6.33 early afternoon high. Although light profit-taking was seen ahead of the close, the losses were minimal, leaving June to finish with an impressive 14.2-cent gain at $6.198.