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Huntsman - Speculators Force Natural Gas Prices to All Time High

Petrochemical industry | 12 Oct 2005 IST | Polymerupdate.com
Salt Lake City, UT – Jon M. Huntsman, the founder and Chairman of Huntsman Corporation (NYSE: HUN) and Chairman of the Wharton Business School Board of Overseers, today said traders on the New York Mercantile Exchange (NYMEX) have forced the price of natural gas to all time highs – exceeding $15/mmbtu - severely hurting every U.S. natural gas consumer.

“This is a disaster for American industry, the American farmer and for the 55% of Americans who heat their homes with natural gas,” said Mr. Huntsman. “It is particularly painful for those on fixed incomes who simply cannot afford to pay prices that are double most of the rest of the world. And the most aggravating part of this whole fiasco is that it absolutely is not necessary.

“In the year 2001, natural gas inventories were lower than they are today, production and demand were at similar levels, and the price was $2.30/mmbtu.”

“The traders and speculators will tell you these ridiculously high prices are simply the result of ‘supply and demand’. Nonsense!” said Mr. Huntsman, author of the recent best selling book Winners Never Cheat. “There is no shortage of natural gas, and demand is no greater than it has been for several years. Further, inventories are at near record levels.

“Some speculators and traders are blaming cold weather for this maniacal price surge. That also is untrue. The country builds natural gas inventories for the very reason that weather is colder in the winter. The country is not drawing down its huge inventories any faster now than it has in the past.

“No, this is not an issue of supply and demand. It is an issue of traders and speculators on the NYMEX hurting America on every front while they pocket outlandish profits. There is no need for this. It is outrageous and greedy.

“I call on every American to contact members of Congress and the White House and demand that natural gas futures trading be brought under control,” said Mr. Huntsman.
Note: This story has not been edited by The Polymerupdate Editorial team and is auto-generated from a syndicated feed.

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