A sour bet on the direction of natural gas prices contributed to Goldman Sachs‘ weak performance in commodities trading during the second quarter.

According to The Wall Street Journal, the bank had wrongly bet on an increase in gas prices in the Marcellus shale in Ohio and Pennsylvania, as a major pipeline was being constructed to export from the region.

Dallas-based Energy Transfer Partners is spearheading the $4.2 billion Rover natural-gas line in question, which would move gas from the Marcellus shale to the Midwest.

According to Dallas Morning News, industrial spills prompted regulators to delay construction on the pipeline. This increased the market discount on Marcellus gas prices, The Journal reported. The Henry Hub natural gas price has slumped 22% this year.

Goldman’s losses were up to $100 million, the report said, and likely took place as the bank helped clients bet on price moves through derivatives like swaps.

Goldman’s topline profits were stronger than expected in the second-quarter. But revenues in the fixed income, currency, and commodities client execution unit fell for a second-straight quarter and by 40% year-on-year to $1.16 billion. FICC revenues in the first half of the year were down 19% from the same period last year to $2.8 billion.

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Foto: sourceMarkets Insider