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

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

As prices rise, longs are bearing higher holding costs. All 24 hourly funding rates in the past 24 hours were positive, totaling about 1.97%, meaning longs need to 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. Among them, at 06:00 today, the single-hour funding rate 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, liquefied natural gas (LNG) export demand near record levels, and recent production declines jointly supported the rise in U.S. natural gas prices, with part of the gain also coming from short covering.

However, there is still a divergence between short-term weather trading and 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 considering warmer weather in early November, upward revisions to inventory expectations, and production growth.

On-chain, there is also a crude oil short (0xc568) executing a trade of shorting crude oil and going long natural gas, having allocated $3.86 million in long positions, with an average entry price of $3.269 and unrealized profit of about $398,000.