Hedge fund bets millions on gas prices |
Date: Thursday, August 20, 2009
Author: Financial Times Alphaville
A hedge fund
has made a large bet that natural gas prices will triple by winter just
as the price of the commodity slides to a seven-year low. Traders took
notice last week when the fund, as yet undisclosed, spent millions for the
right to buy US natural gas at $10 per million British thermal units in
January and February, up from Wednesday’s spot level just above $3 per mBtu.
The bet echoes purchases of call options in late 2007 to cash in if oil
moved to $150 a barrel by mid-2008.