Are ETFs Driving Commodity Prices?

John Hyland, CIO of U.S. Commodity Funds, is one of several people expected to testify on Wednesday at a Commodity Futures trading commission hearing on the issue of speculation.

The question to be answered, according to WSJ reporter Carolyn Cui, is whether commodity ETFs are influencing the price of the futures they are designed to track.

The U.S. Natural Gas Fund (UNG) has grown from $727 million to $4.5 billion in assets under management in just four months. The U.S. Oil Fund (USO) is at $2.7 billion in assets.

The U.S. Natural Gas Fund ran out of new shares to sell in June which means it hasn’t had money to buy new contracts.

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