US natural gas speculators cut their net long positions for a fifth time in the past six weeks, betting prices will decline with output at record highs and heating demand falling with the coming of more spring-like weather. Speculators in four major New York Mercantile Exchange (NYMEX) and Intercontinental Exchange (ICE) markets reduced their bullish bets by 11,578 contracts to 209,510 in the week to April 24, the US Commodity Futures Trading Commission said on Friday.
That compares with a five-year (2013-2017) average speculative net long position of 161,450. The biggest net long position was 456,475 in April 2013, while the biggest net short position was 166,165 in November 2015, according to Reuters data. Gas futures on the NYMEX averaged $2.73 per million British thermal units during the five trading days ended April 24 versus $2.72 during the five trading days ended April 17.
Some traders said they expect utilities will boost inventories close to near-normal levels by the end of the summer injection season because production was at a record high and expected to keep growing as new pipelines enter service. Production in the lower 48 states averaged a record high 78.8 bcfd over the past 30 days, according to Thomson Reuters data.
Comments
Comments are closed.