Another way of depicting Amaranth’s natural gas positions
is to compare them to the open interest of NYMEX natural
gas futures contracts (abbreviated as NYMEX NGFOI). Figure
8 compares the actual Amaranth positions to the open interest
of NYMEX natural gas futures. Figure 8A shows all the
Amaranth positions (including ICE positions as well) as a
percentage of the NYMEX NGFOI. In many contract months,
this is greater than 100%.33 Figure 8B shows only the positions
on NYMEX as a percentage of NYMEX NGFOI. It is still
very high and, in some contracts, greater than 100% as well.
Figure 8C shows only Amaranth’s position in NYMEX natural
gas futures as a percentage of NYMEX NGFOI. Even by this
very direct measure of Amaranth’s positions on the NYMEX
exchange, their positions were excessive representing more
than 50% of the open interest in many contracts and almost
100% in some contracts. In some contracts, Amaranth had
positions of nearly 100,000 contracts, which represents
roughly 1 trillion cubic feet of natural gas, 23% of the amount
of natural gas consumed by residential users in 2006, and 5%
of the total amount of natural gas consumed in the United
States in 2006
Another way of depicting Amaranth’s natural gas positionsis to compare them to the open interest of NYMEX naturalgas futures contracts (abbreviated as NYMEX NGFOI). Figure8 compares the actual Amaranth positions to the open interestof NYMEX natural gas futures. Figure 8A shows all theAmaranth positions (including ICE positions as well) as apercentage of the NYMEX NGFOI. In many contract months,this is greater than 100%.33 Figure 8B shows only the positionson NYMEX as a percentage of NYMEX NGFOI. It is stillvery high and, in some contracts, greater than 100% as well.Figure 8C shows only Amaranth’s position in NYMEX naturalgas futures as a percentage of NYMEX NGFOI. Even by thisvery direct measure of Amaranth’s positions on the NYMEXexchange, their positions were excessive representing morethan 50% of the open interest in many contracts and almost100% in some contracts. In some contracts, Amaranth hadpositions of nearly 100,000 contracts, which representsroughly 1 trillion cubic feet of natural gas, 23% of the amountof natural gas consumed by residential users in 2006, and 5%of the total amount of natural gas consumed in the UnitedStates in 2006
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