US Natural Gas Futures Top $3 for First Time Since March
A natural gas pipeline distribution hub in Erath, Louisiana.
Photographer: Mark Felix/BloombergUS natural gas futures rose as forecasts shifted to show hotter weather in the coming weeks, signaling increased cooling demand for power-plant fuel as homes and businesses crank up air-conditioners. Intraday prices for the front-month contract reached more than $3 per million British thermal units for the first time since late March.
Significant short exposure by hedge funds last week threatens further price gains via a short squeeze, said Eli Rubin, senior energy analyst at EBW Analytics Group. Money managers last week moved to their least bullish position — as well as having the largest short-only position — in 18 months, according to weekly futures and options data from the Commodity Futures Trading Commission on seven Henry Hub contracts.