• 4 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 6 minutes UAE says four vessels subjected to 'sabotage' near Fujairah port
  • 13 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 15 minutes Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 6 hours Wonders of Shale- Gas,bringing investments and jobs to the US
  • 3 hours Why is Strait of Hormuz the World's Most Important Oil Artery
  • 47 mins Trump bogged down in Mideast quagmire. US spent $Trillions, lost Thousands of lives, and lost goodwill. FOR WHAT? US interests ? WHAT INTEREST ? . . . . China greatest threat next 50 years.
  • 4 hours Rural and Conservative: Polish Towns Go 'LGBT free' Ahead Of Bitter European Election Campaign
  • 5 hours IMO2020 To scrub or not to scrub
  • 1 hour California's Oil Industry Collapses Despite Shale Boom
  • 11 hours Compensation For A Trade War: Argentina’s Financial Crisis Creates An Opportunity For China
  • 1 hour Global Warming Making The Rich Richer
  • 6 hours Knock-Knock: Aircraft Carrier Seen As Barometer Of Tensions With Iran
  • 3 hours Misunderstanding between USA and Iran the cause of current stand off, I call BS
  • 11 hours China Downplays Chances For Trade Talks While U.S. Plays ‘Little Tricks’
  • 3 hours Iceland Reducing Gas Stations By Half By 2025
  • 11 hours Devastating Sanctions: Iran and Venezuela hurting
Alt Text

EU Promises To Double U.S. LNG Imports Within 5 Years

The European Union has promised…

Alt Text

Turkey Steps Up Fight For Gas in Eastern Mediterranean

Turkey exploration drilling for natural…

Mad Hedge Fund Trader

Mad Hedge Fund Trader

John Thomas, The Mad Hedge Fund Trader is one of today's most successful Hedge Fund Managers and a 40 year veteran of the financial markets.…

More Info

Trending Discussions

Natural Gas Indigestion

I always thought that a great strategy for a new hedge fund would be to only buy positions from existing hedge funds that were blowing up.

That fund would buy securities subject to margin calls and distressed liquidations, which are by definition at six standard deviation extremes. It would not trade very often, but few it executed on would be humdingers.

If I were running such a fund today, I would be getting reading to short natural gas.

Big bets that natural gas would go down have cost the Bristol Energy Fund and SandRidge Capital 15% in the first half of this month, while five funds run by Morgan Stanley have been clocked for $120 million.

There has been a lot of talk about using CH4 to bridge our way to a carbon free economy because it produces half the CO2 that coal does. But virtually nothing has been done to put the infrastructure in place needed to consume the newly found 100 year supply in the US.

To burn this simple molecule, you need vastly more pipelines, power plant conversions, and above all, storage, than we have now.

Until then, the big production companies, like Chesapeake Energy (CHK) and Devon Energy (DVN) are going to race to out produce each other, praying they can use volume to offset price cuts, creating a huge weight on prices.

If we could just get a nice double top around $6, you might have a great trade here.

By. Mad Hedge Fund Trader




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News