• 4 minute Hey Oil Bulls - How Long Till Increasing Oil Prices and Strengthening Dollar Start Killing Demand in Developing Countries?
  • 8 minutes Could oil demand collapse rapidly? Yup, sure could.
  • 15 minutes Oil and Trade War
  • 5 hours Could oil demand collapse rapidly? Yup, sure could.
  • 16 hours Are EVs Safer Than Combustion Engine Vehicles?
  • 2 hours U.S. Withdraws From U.N. Human Rights Council
  • 12 hours What If Canada Had Wind and Not Oilsands?
  • 26 mins Gazprom Exports to EU Hit Record
  • 19 hours Sell out now or hold on?
  • 5 hours Hey Oil Bulls - How Long Till Increasing Oil Prices and Strengthening Dollar Start Killing Demand in Developing Countries?
  • 2 hours WE Solutions plans to print cars
  • 6 hours EVs Could Help Coal Demand
  • 20 hours Nopec Sherman act legislation
  • 19 hours Migrants: Italy Wants EU Border Agency In Africa, Not At Sea
  • 14 hours Australia mulls LNG import
  • 8 hours Lloyd's of London excludes coal
  • 14 hours Oil and Trade War
  • 14 hours Russia, Saudi Push For Big Hike In Oil Output Despite Iran Opposition
  • 15 hours Oil prices going down
Alt Text

The Permian Faces A Long Term Natural Gas Crisis

Bottlenecks in the Permian have…

Alt Text

Trump’s Tariffs On EU Are Great News For Russia

Souring trade relations between the…

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


x


Back to homepage

Trending Discussions


Leave a comment

Leave a comment




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