Speculative buying boosts Henry hub

By Peter Stewart 17 December 2013
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Gas prices at the Henry Hub in Louisiana cleared the $4/MMBtu hurdle in early December. (Statoil)

Gains in US gas prices have been supported by speculative buying on CME/NYMEX futures. According to disaggregated data from the Commodities Futures Trading Commission, the ‘managed money’ category increased long positions and reduced short positions in early December, going net long for the first time since late October. Managed money includes speculative dealers such as funds and investment banks.

The bullish sentiment is a surprise given the rise in gas production from the Marcellus shale, arguably the most significant gas market development in the Americas this year.

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