One speculator dials it back

Looks like the Congress and the CFTC won’t have the U.S. Natural Gas Fund to kick around, at least for now.
The exchange-traded fund (and its oil-futures-buying counterpart U.S. Oil Fund) has been blamed by some for last year’s run-up in energy prices (as well as the increase in oil prices early this year). The funds allow retail investors to buy into a proxy for oil and gas futures, charging them a hefty fee for the right to access a market not normally open to them.
In a filing this week UNG said it won Securities and Exchange Commission approval to sell up to 1 billion new units, letting it nearly triple in size, but it won’t offer them until it knows what regulatory limits it may face in the future.
What are they waiting for? The Commodity Futures Trading Commission to decide if it will limit how many futures contracts a particular company can hold, a change that seems likely given comments from CFTC Chairman Gary Gensler at recent hearings on the issue.
Restrictions would be welcomed by some, but for many companies they could interfere with how they manage commodity price changes. And as Houston hedge fund manager John Arnold testified limits on financial futures contracts could increase volatility. Others say UNG isn’t to blame at all.
UNG’s decision to withhold the new units for now will likely keep its existing units trading at premium to the underlying futures contracts they’re supposed to track.