Hedge funds and money managers sharply reduced their bullish positions on natural gas last week, marking the steepest decline in a year, as unseasonably warm forecasts threaten to erode demand for the heating fuel, according top a report by Bloomberg.

The report cites data from the Commodity Futures Trading Commission (CFTC) as showing that long-only positions across seven natural gas contracts fell by 65,372 contracts to 626,232 in the week ending 18 March. This reduction pushed net-long positions to their lowest level in over a month, reflecting a bearish shift in market sentiment.

The move comes on the heels of a rise in short positions last week, coinciding with the start of the so-called “shoulder season” – a period between peak winter and summer demand when natural gas consumption typically declines.

Further weighing on sentiment, updated weather forecasts on Friday indicated warmer-than-normal temperatures across much of the US through the end of March, particularly from the Midwest to the East Coast, according to commercial forecaster Maxar Technologies Inc.