Posted by: jhamon | August 17, 2009

MysteryHedgie Talks Turkey… About Energy

Apropos of energy, MysteryHedgie opines:

Natural Gas (UNG) and Crude Oil (USO)…few relationships better represent the rise of China as the marginal price setter of stocks, bonds and globally traded commodities (oil) and the decline of the US based consumer (natural gas, an almost exclusively North American commodity)…see below.  As risk gets repriced globally and laggards outperform leaders, UNG may gain on USO…On the oil side, China could slow purchases as prices remain above $60/bbl.; China also knows that these prices  hurt the still- prized US consumer. Natural Gas prices in huge supplies, low demand and no hurricane threat.  Longer term, should Obama’s cap and trade legislation fail, green-istas may concentrate on nat gas substitution for home heating, perhaps actually trying to save taxpayers money!



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