Eoin Treacy's view The Gulf of Mexico oil spill has focused attention on the methods used to extract oil and gas from previously inaccessible areas whether through deep water drilling or hydraulic fracturing. A gas well blowout in Pennsylvania on June 3rd began to shift investor attention towards the possibility that hydraulic fracturing could come under more scrutiny from an already twitchy political class. (Also see Comment of the Day on June 7th). There have been questions about the environmental credentials of shale gas drilling methods for some time and these will need to be answered conclusively if the vast potential of the resource as a game changer in the energy sector is to be more fully realised.

Natural gas prices broke successfully above $4.50 two weeks ago and a sustained move back below that level would be required to question scope for further upside. Since I am going on holiday from tomorrow, I placed an in-the-money stop on my long position in the hope that it will continue to perform.