US natural gas speculators cut their net long positions for a third week in a row, betting prices will decline as supplies remain adequate with output near record highs and forecasts for near seasonal weather for the rest of the winter.
Speculators in four major New York Mercantile Exchange (NYMEX) and Intercontinental Exchange (ICE) markets reduced their bullish bets by 26,553 contracts to 191,986 contracts in the week to February 20, the US Commodity Futures Trading Commission said on Friday. Traders said there was more than enough gas available even after the cold blast at the start of the year, with production near record highs and forecasts for the weather to be mostly seasonal for the rest of the winter.
Production in the lower 48 US states rose to an all-time high of 77.7 billion cubic feet per day in December and was moving back to that lofty level as the weather moderates, allowing wells to return to service after they froze during the brutally cold first week of the year. The National Weather Service has projected temperatures would remain mostly seasonal for the rest of the winter.
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