The Jeff Gundlach trade — long natural gas/short Apple — is having a monster day.
It’s up 5%, with much of the gains thanks to natural gas’ surge in the last hour.
What’s going on? It looks like the EIA has cut its output growth estimates, while also hiking consumption estimates.
The revisions helped send gas prices to their highest levels in more than a month.
The agency said natural gas consumption would average 70.2 billion cubic feet per day in 2012, a 5.1 per cent increase from 2011 and an upward revision of 0.6 Bcf/d from last month’s Outlook.
As a result, after trading around $2.37 for most of the day, July Henry Hub prices went skyward, hitting $2.53 at the close of the market, according to MarketWatch.
The late rally may also have been fuelled by news from the Financial Times that hackers have evidently been targeting natural gas pipeline controls for several months.
According to Ed Crooks, the Department of Homeland Security’s Industrial Control Systems Cyber Emergency Response unit recently revealed hackers were using “spear-phishing” emails and links to gain control of gas pipelines in order to disrupt supplies, and/or attempt to access information about commodities trading data.