Natural Gas Futures Surge as Record Short Positions Squeeze

U.S. natural gas futures rose between 5% and 5.8% to $3.148/mmBtu on November 9, 2026, after weather forecasts predicted a cold spell across the Atlantic seaboard. The price jump triggered a short squeeze, forcing hedge funds and traders to unwind bearish positions they had built based on expectations of a record-warm winter driven by a Super El Niño pattern.

Data from the United States Commodity Futures Trading Commission revealed that money managers had previously increased short-only positions to record highs, holding 636,576 positions across seven benchmark Henry Hub contracts. This marked the largest such position since May 2013, leaving the market highly vulnerable to price reversals.

Forecasts from BAMWX indicated a cold front would sweep through the Mid-Atlantic and Northeast regions starting Wednesday, increasing heating demand. While the immediate rally was driven by short covering, analysts from Tradition Energy noted that the market could remain volatile as shorts continue to cover, though some expect the rally to be short-lived as the cold weather is predicted to fade quickly.