Possibility Productions

October 18, 2010, 6: 09 AM EDT by Asjylyn Loder

October 18 (Bloomberg) – hedge funds cut their bets bull on gas to lower this year level as expand stock prices led to a decline in 13 months.

Funds and other large cut speculators betting on prices increased by 36 per cent in seven days ended on October 12, according to the weekly report of commitments of Traders of the Commodity Futures Trading Commission. Was the third week of descents, bringing reduction from 21 September to 71 percent. “If someone searched for foundations and see how much we have in the ground now, I not could blame for sale,” said Hamza Khan, an analyst at Schork Group Inc., an enterprise consulting in Villanova, Pennsylvania.Natural gas has fallen 37 percent this year, U.S. stocks rose in the middle of the growing production of slate and demand deposits has not been able to accelerate from recession. Excess inventory has expanded as air-conditioning use outside candles after summer before the demand for winter heating rises.Contracts fuel for November delivery fell 4.4 cents, or 1.2 per cent to $3.491 million British as 11 a.m. London time today in the New York Mercantile Exchange, the lowest level since September 22, 2009.The surplus grew a third seven days a week thermal units ended on October 8, the Energy Department said on 14 October. Stocks increased in 91 million cubic feet to 3.59 billion cubic feet, 7.4% above the average of five years and up 6.7% the previous week.Gas RigsThe us platforms number reached 34 percent in the last year 966 week ended on October 15, up to 721 a year ago, according to data published by Baker Hughes Inc.Gas output will be average 61.29 million cubic feet a day this year, up from 61.21 million estimated in September, the Energy Department said on October 13 in its monthly short-term energy Outlook. The production will be 2.2% higher than last year. U.S. gas inventories will be its peak at the end of this month in 3.726 trillion cubic feet, the Department of energy called formations rose 71% in 2008 from a year earlier to 2.02 trillion cubic feet, according to data from the Whiteboard Gobierno.Gas slate said.Production represent 34 percent of the total production in 2035, compared with 18 percent in 2008, Department of energy estimates show. “Output growth has reduced the need for imports of liquefied natural gas from places like Qatar Gulf State.” With the best technology and this gas shale, what you see is a huge amount of drilling and you are adding to the inventory, “said Andy Lipow Lipow Oil Associates LLC in winter TemperaturesA Houston.milder lighter than normal u.s. President can not produce sufficient demand to reduce surplus, weighs about prices, Lipow said.U.S.las temperatures tend to be higher on average this winter, with a degree of heating from 6 percent to 7 percent fewer days of a year earlier, according to an October 13 Center.Declining United States climate prediction forecast convinced producer prices to restrain output, Khan said.”"Producers and traders decrease red-cortas in the future to 16,008 Nymex seven days which ended on October 12, 20,638 the week ending October 5, in accordance with the CFTC, stating that producers sell fewer contracts to deliver fuel, natural gas positions said.” “Producers are less inclined to cover prices at these levels, but is too little, too late, said Khan.” At any given time, Wall Street ignore the fundamentals and use the main tendencia-es – su-friend. “If the sale of all the others, so sell.”ContractsHedge funds futures and other large speculators cut long network in futures and options combined into four gas by 11,445 equivalent to 20,034 in the week ending October 12, bare this year futures contract positions, far showed.The net natural gas longs CFTC data includes an index of four contracts adjusted to future equivalent: future of natural gas from Nymex Nymex Henry Hub swaps, Nymex Henry Hub penultimate swap and ICE Henry Hub intercambia.Henry Hub in Erath, Louisiana, is the point of delivery for Nymex, a reference for positions fuel.Net duration in oil price futures, by the CFTC classifies as managed, including hedge funds, commodities and commodity advisors pools money grew a 10,198 futures and options combined to 178,738 according report.Bullish CFTC bets on gasoline prices rose 6,351 futures and options were combined to 56,705, weekly straight sixth increase data showed.Duration on oil heating network positions declined 6,324 or 12 per cent to 46,375.

-With the assistance of Barbara Powell and Margot Habiby in Zhou Moming and Christine Buurma in New York, Dallas and Ben Farey in Londres.Editores: Dan Stets, Bill Banker

To contact the reporter on this story: Asjylyn Loder in New York in aloder@bloomberg.net

Contact with the responsible of this story editor: Dan Stets in dstets@bloomberg.net

View the original article here

Related posts:

1. Loss of oil fuel may Jump to highest in two years: the energy markets
2. Reach more consumers emerging market funds stock
3. Debt Spain energy infects Enel with sovereign Woes: Euro credit
4. Increase the acquisition loans as banks Chase M & A rates: credit markets
5. OK, smart guys: fix the energy problem