Thursday

Natural Gas 7 Year Low

Post a Comment August 20, 2009 – 2:55 pm |   | Permalink |  Print This Post |

Natural Gas hit 2977 (2.977) - a 7-year low. The average price of gas was 2.98 in July 2002. We bought 10000 more units of Natural Gas ETFs at 0.55. There is clear manipulation in play: whilst the September contracts are down almost 3%, the ETFs are up and the October Gas contracts are almost 40c higher. This is the equivalent of $8 difference for crude oil at $60 vs $68 (ie $3.00 vs $3.40). We also opened a $2 position in the September contract at 2.980. The September contract is obviously risker as it expires in 6 days.