On August 20, 2009
Natgas Conundrum: Calming Volatility Fears in Push for Clean Energy Alternative
A hedge fund — still undisclosed at this time — made a hefty bet that natural gas prices will triple once Jack Frost starts nipping a few noses. The Financial Times reported an unnamed fund spent millions to take out call options on natural gas at $10 per million British thermal units in January and February. That’s three times more than today’s spot price, which for the first time in seven years, dipped below $3 per million British thermal units. Generally, BNET doesn’t spend too much time writing or speculating about movements within the futures or equities markets. I bring it up because it illustrates the difficulty of selling the public and lawmakers on the benefits of shifting the country’s power generation system away from coal…
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