Nat Gas Plunges On Larger Than Expected Stockpiling In Inventories

Tyler Durden's picture

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SDRII's picture

So, industrial production must be spiking

Cursive's picture

@SDRII

+1.  Nat gas is a "tell" that the economy is on shaky ground.

HedgingInfiniteRiskIsNotPossible's picture

Somehow "gas, bitchez!" doesn't seem right here.

Kreditanstalt's picture

Well, what's new?  Anything with any real value to it, anything which represents physical wealth is being sold off relentlessly anyway...nat gas must be the most over-hyped, manipulated market out there.  Wish I had known it was to be a multi-year "investment" when I bought it...

Edna R. Rider's picture

Nat gas has moved down over the past 2 years.  It does occasionally rally but it is unclear why except as a short-squeeze, we-ran-out-of-ideas last alternative (that's how we play it any way).  It really isn't news that it moves down 5%.  It would be big news if it moved up 5% though.

ratava's picture

stuff is cheap, speculators got fucked. not a bad deal.

Rollerball's picture

NG is cheap because you will soon be able to burn ocean water in any two-cycle engine.

http://www.youtube.com/watch?v=iCZyRaFo5vM

Cursive's picture

Thanks for the clip.  This is all very sad.

godfader's picture

Negative P&L for one guy of the future trade is a positive P&L for the guy on the other side. Zero sum game.

BearOfNH's picture

... except for the short who actually delivers product, making a marginal profit on the transaction. That turns it in to a "negligible sum" game.

 

sbenard's picture

Collapsing demand for nat gas? Or spiking supply?

Now that businesses have completed their inventory restocking, perhaps some of both. Either way, nat gas prices are tumbling! At least there is one form of relatively cheap energy!

Rogerwilco's picture

The "spiking supply" explanation is doubtful. Drilling for NG collapsed 18 months ago. The average productive lifespan of these wells is about three years, so without new wells coming online regularly, the supply should be contracting by now.

BlackBeard's picture

Expect some British fund to blow up soon.

ziggy59's picture

plenty of gas all around..

wall street..

gulf,

DC..

 

no wonder the price dropped..

Crummy's picture

Stockpiling on the imminent conflict in Iran, who has the world's second largest reserves.

 

 

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