Hedge Funds Weighing Down Natural Gas Prices

Natural gas prices are expected to continue their downward trend, according to an analysis by Shortby. The analyst notes that hedge funds remain net short on natural gas, while retail traders are holding onto their long positions.

This 'untapped demand zone' has been in place since 2024 and is currently at approximately $2.36. Shortby attributes the prolonged bearish sentiment to traders refusing to cut their losses.

The analyst predicts a further decline of -12% over the next few days or weeks, citing the continued short hedging by producers and leveraged funds.