Natural gas market tempts hedge funds
The introduction of hydraulic fractioning technology could be a new dawn for natural gas, though some hedge funds have pulled back as prices remain in the doldrums
Names such as Amaranth Advisors serve as a warning to those who bet big in this market. The Greenwich, Connecticut-based hedge fund imploded in 2006 after racking up more than $6 billion in losses on large bets in the natural gas market.
For many years volatility was a permanent feature of the natural gas market. During the winter of 2000-01, the main US benchmark price, Henry Hub, spiked to $10 per million British thermal units (Btu), after having previously fluctuated around $2 per million Btu
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