Hedge funds reduced bullish wagers on natural gas to the lowest level in more than nine months as U.S. shale production surges to an all-time high. Speculators lowered their net-long position across four benchmark contracts by 12 percent in the week ended Sept. 9, the third consecutive drop, U.S. Commodity Futures Trading Commission data show. Short positions, or bets on falling prices, increased to the most since December. Goldman Sachs Group Inc. and Barclays Plc cut their gas price forecasts for the fourth quarter and next year as the jump in shale production outpaces government estimates. Output from the Marcellus in the eastern U.S. is forecast to top 16 billion cubic feet a day for the first time in October. Futures gained 2.4 percent in the week of the report before tumbling 3.2 percent through Sept. 12. “Last week we had another failed rally because we continue to get […]