US natural‑gas futures edged above $3 per million British thermal units, a first since late March, as traders priced in a warming spell that will raise cooling demand. The front‑month Henry Hub contract surged to $3.02, reflecting expectations that households and businesses will crank up air‑conditioners in the coming weeks and power‑plant operators, while storage levels dip below seasonal averages.

Market watchers note that hedge funds have piled into short positions last week, their stance reaching the largest all‑short exposure in 18 months on Henry Hub contracts. Eli Rubin of EBW Analytics warns a short squeeze could push prices higher, as money managers shift to their most bearish stance in nearly two years and could strain supply forecasts in the next cycle.

With prices above the $3 threshold, utilities will face higher fuel costs, prompting calls for accelerated renewable projects. Investors will monitor storage data and weather models closely, as any deviation from the projected heat wave could swing the market back toward historical averages. The current spike underscores the delicate balance between supply, demand, and speculative activity for the sector.