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Category: Investment, Natural Gas
Natural Gas: Push Short Sellers Back, Weather, Storage Deficit, and Demand Favors Buyers
By Senior Energy Industry Executive Karl W. Miller
January 27, 2010
Energy Commentary from Karl Miller - Read Bio and More info
Have courage and take this opportunity to push the short sellers, who may be manipulating the Natural Gas market.
They have limited leverage capability, unlike several years ago, as their keepers, the prime brokers have either gone bankrupt or cut their leverage significantly. They are much weaker than investors might otherwise think, and can't afford the significant marked to market losses if their short positions start losing money.
The extreme weather starting this week, natural gas storage deficit, and demand are wind at the fundamental natural gas buyers back.
Short sellers always capitulate, when the ratio of buy orders overtakes their artificial sell orders on the market open and close. They know when to cover and either get out, or become a buyer especially when the market fundamentals move against them, which they now have on a substantial basis.
The short sellers have manipulated the natural gas prices down to very attractive levels, just before the extreme weather hits this week. Being short natural gas at this point in the winter cycle is high risk, and natural gas volatility will overtake the short sellers very quickly for the above mentioned reasons.
For further reference see following analysis:
"Natural Gas: Extreme Weather Update" karlwmiller.blogspot.com/2010/01/natural...
AND
"Natural Gas and Oil: Thriving on Chaos" www.naturalgasstocks.com/Karl_Miller/new...
Mr. Millers Office
About the Author:
Mr. Miller is a globally recognized energy executive and institutional investor with a balance of both financial and energy sector expertise. Mr. Miller began his career on Wall Street during the 1980s and has an extensive background in banking, commodities trading and risk management.
Mr. Miller is acclaimed for multiple ground breaking market calls and investments, including the U.K switching from a net gas exporter to a net gas importer in 2000, called the California energy crisis in 2001, called the Ethanol and Bio diesel boom and bust in 2007, called the renewable energy boom and bust cycle underway in 2008, and most recently called the revival of natural gas in the United States in 2009.
Mr. Miller has a long history in the global energy business and has held a variety of executive management positions both within the United States, Europe and Asia. Mr. Miller has bid on over $25 billion in energy related assets during his career.
Mr. Miller has built, restructured and managed energy businesses for major public energy companies on several continents, including PG&E Corporation, Electricitie de France, El Paso Energy, Enron Corporation and JPMorgan Chase.
Mr. Miller holds an MBA in Finance from the Kenan-Flagler Business School at The University of North Carolina, Chapel Hill. Mr. Miller also holds a B.A. in Accounting from Catholic University located in Washington DC.
Disclaimer:
This column, Energy Commentary from Karl Miller, is the opinion of Karl Miller.
Content found in the articles is subject to the terms found in the InvestorIdeas.com disclaimer and does not represent a recommendation of investment advice. Investors should seek the advice of a qualified investment professional prior to making any investment decisions.
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