Wednesday 8 February 2012

FT Alphaville » Natural gas outrage of the day

The natural gas market has always behaved a little oddly.

First, it’s always been hugely seasonal, thus responsible for many a widow-maker trade. But now investors and traders have to contend with the impact of fracking too, a process which has by and large upped production to such a degree that prices have been knocked well and hard (à la the Baltic Dry Index):

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