NATGAS natural gas contracts surge over 3%, on-chain longs need to pay nearly 2% funding fee daily

November 12 — according to TradingBeats monitoring, the NATGAS natural gas perpetual contract on Hyperliquid is trading at $3.64, up about 3.13% in the past 24 hours, with a trading volume of approximately $38.42 million and a notional open interest of approximately $32.37 million.

As prices rise, longs are bearing relatively high holding costs. All 24 hourly funding rates over the past 24 hours were positive, cumulatively about 1.97%, meaning longs must continuously pay funding fees to shorts. Based on a fixed notional long position of $10,000, the cumulative payment over the past 24 hours was about $197. At 06:00 today, the single-hour funding rate briefly reached 0.1693%, corresponding to a single payment of about $16.93 per $10,000 long position. The current hourly reference rate has fallen back to about 0.0413%.

On the news front, Reuters reported on November 11 that cooling expectations, near-record liquefied natural gas (LNG) export demand, and recent production declines are jointly supporting U.S. natural gas prices, with part of the gain also coming from short covering.

However, short-term weather trading still differs from supply-demand expectations for the entire winter. The U.S. Energy Information Administration (EIA) on November 10 lowered its forecast for the average Henry Hub natural gas spot price from November this year to March next year by 16% to $2.87, mainly reflecting warmer weather in early November, upward revisions to inventory expectations, and production growth.