Natural Gas Prices Expected to Decline Further on Net Short Hedge Funds

French PEG Natural Gas Daily Futures for November 3rd, 2026 saw traders expecting natural gas prices to decline further.

Hedge funds are net short on natural gas, while retail traders remain net long. This disparity is unusual and suggests that retail traders may be holding onto losing positions.

A significant untapped demand zone for natural gas has been identified at approximately $2.36 since 2024. The expectation is that this will lead to a further unwinding of long positions as producers and leveraged funds continue with short hedging.

According to Shortby, a predicted decline of -12% over the next few days or weeks is likely.