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

Brighter outlook for natural gas prices tempt hedge funds

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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