Hedge Funds Turn Bearish on US Natural Gas for First Time Since 2024

Hedge funds have shifted their positions on US natural gas to bearish for the first time since 2024, driven by data indicating ample domestic supply and expectations of declining export demand. Investors anticipate that natural gas prices will remain under pressure due to rising production and storage levels. Signals of slowing demand for liquefied natural gas (LNG) exports, in particular, have prompted hedge funds to increase their short positions. Market participants also note that mild winter conditions in the US have limited demand. Combined, these factors have strengthened the downward trend in natural gas futures. Analysts suggest that this move by hedge funds could signal a short-term correction in energy markets, but caution that variables such as geopolitical developments and weather conditions may still impact prices. This is not investment advice.