San Francisco Chronicle – Hedge funds more than doubled bullish bets on natural gas just before government data showed record production and Exxon Mobil Corp. decided not to reduce output, cutting short the biggest rally in more than a year.
The funds and other large speculators raised wagers on rising prices to a six-month high in the seven days through Jan. 31, according to data from the Commodity Futures Trading Commission’s Commitments of Traders report. Gas gained 14 percent in the week ended Jan. 27 after Chesapeake Energy Corp. and ConocoPhillips said they will reduce output.
