Could One Big Cold Snap Torch Hedge Funds' Record US NatGas Shorts Meteorologists are tracking a potential cold blast across the eastern half of the Lower 48 next week, just as hedge funds' short-only positions in US natural gas futures have surged to record highs.
That crowded bearish positioning leaves the market vulnerable to a short squeeze if colder weather translates into stronger heating demand. The Commodity Futures Trading Commission released data on Friday showing that money managers' short-only positions across seven benchmark Henry Hub contracts soared to 636,576.
That marked the third consecutive weekly record and the largest position in data stretching back to May 2013. Record high: US NatGas prices have traded in a tight range between $2.60 and $3.30 since early February of this year. So what are meteorologists looking at?
Forecasts have shifted to show colder weather across the Lower 48. The cold is expected to be more pronounced in the Mid-Atlantic and Northeast.