Hedge-fund managers take record short position in US natural gas

US natural gas: U.S. natural gas is a major fuel for residential heating, electricity generation, and liquefied natural-gas exports. It is central to the reported development because mild-weather forecasts are weakening demand expectations, pressuring futures prices, and encouraging bearish positioning. Hedge-fund managers: Hedge-fund managers are professional investors who use strategies such as futures and options to express views on commodity prices. In this news, they have taken an exceptionally bearish position in U.S. natural-gas futures, reflecting expectations that mild winter weather will reduce heating and power-generation demand. Market risk: The unusually concentrated bearish positioning also raises the possibility of a short squeeze if a sudden cold spell sharply increases demand. Weather outlook: Forecasts for mild conditions through late October and early November are reducing expected heating demand and could allow inventories to remain elevated. Market positioning: The reported short-only position across benchmark Henry Hub contracts is the largest in records extending back to 2013.