Meteorologists are tracking a potential cold blast across the eastern half of the Lower 48 next week, just as hedge funds' short-only positions in US natural gas futures have surged to record highs. That crowded bearish positioning leaves the market vulnerable to a short squeeze if colder weather translates into stronger heating demand.

The Commodity Futures Trading Commission released data on Friday showing that money managers' short-only positions across seven benchmark Henry Hub contracts soared to 636,576. That marked the third consecutive weekly record and the largest position in data stretching back to May 2013.

Record high:

US NatGas prices have traded in a tight range between $2.60 and $3.30 since early February of this year.

So what are meteorologists looking at?

Forecasts have shifted to show colder weather across the Lower 48.

The cold is expected to be more pronounced in the Mid-Atlantic and Northeast. Average temperatures in Washington, D.C., could plunge to just 35°F by the end of next week, with cold air beginning to pour into the region around midweek.

"We're targeting this upcoming Wednesday for the next cold front to sweep through the region. Severe weather is not favored at this time, but a few strong wind gusts can be possible along the front. The low is expected to linger through Friday evening, bringing lake effect showers, and possibly a few flurries, to lake effect zones," private meteorological firm BAMWX wrote on X.