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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Ed Ajootian who wrote (75798)	11/30/2006 7:54:22 PM
From: Sweet Ol	Read Replies (1) \| Respond to of 206138

Ed, I don't understand how you interpret your chart. It looks to me like the 3-months strip was over $7 for 10 months starting in July of 05. What am I doing wrong? Best to all, JRH

To: Ed Ajootian who wrote (75798)	11/30/2006 9:43:48 PM
From: jmj	Respond to of 206138

That Frank guy.....love it!

To: Ed Ajootian who wrote (75798)	12/1/2006 2:30:05 AM
From: energyplay	Read Replies (2) \| Respond to of 206138

I think another factor in natural gas prices was the extensive participation by hedge funds on the long side from the summer onward. Some hedge funds (Amaranth, obviously) paid big prices to long NG contracts for September, October and November. Their counterparty, probably an investment bank or other hedge fund, was short those contracts. After prices dropped, the counterparty would make a lot of money closing the trade, and so they were willing to pay a higher than normal price to buy NG futures and close the trade. I think this may have artificially held up NG prices the past few months. Money the hedge funds lost (Billions) has held the market price up during the shoulder season with full storage. Maybe not as big a factor as the Hurricanes of 2005, but still a factor. I don't think will will get this same effect next year.