Producers have hedged at $7. They will get $7/mcf no matter what. Producers don't care what the spot price of NG is. They will supply NG until storage is full. After that, NG will be dumped on the street for $7.
The most important question is: who has taken the opposite trade of the NG hedge? Who is loosing money each day being forced to buy NG at $7 (and sell for $3)?
Oil Majors Should Just Buy Real Gold [View article]
Oil companies could buy oil on the open market and store for future delivery, instead of producing it to make money. Guess what, this is exactly what e.g. Shell is doing.
Gold Miners: Biggest Drag on My Portfolio, Yet the Biggest Opportunity [View article]
It seems that any time Jim Rogers touts something, soon after the security crashes. First it was: "invest in commodities", but a few months later RJI crashed. Then it was: "invest in China", and a few months later the Hang-Seng crashed.
How Low Can Natural Gas Prices Go? [View article]
The most important question is: who has taken the opposite trade of the NG hedge? Who is loosing money each day being forced to buy NG at $7 (and sell for $3)?
Oil Majors Should Just Buy Real Gold [View article]
Gold Miners: Biggest Drag on My Portfolio, Yet the Biggest Opportunity [View article]
First it was: "invest in commodities", but a few months later RJI crashed.
Then it was: "invest in China", and a few months later the Hang-Seng crashed.
Barron's Banks on $100 Oil [View article]