Oil and gas prices diverge as hedge funds cut bets

Date: Monday, August 20, 2007
Author: Javier Blas in London, FT.com

The movement of crude oil and natural gas prices in the past two weeks has caught the energy market by surprise as hedge funds liquidate their positions en masse and cause a sudden change in the directions the prices, analysts say.

In the midst of a global credit squeeze, hedge funds have been cutting many of their bets on gas and oil, according to the latest data from the US Commodities Futures Trading Commission, the market regulator. This has resulted in oil and gas prices moving sharply in opposite directions. For the complete story: