The NYMEX January natural gas futures contract settled at $3.633/MMBtu Tuesday, 10.8 cents above Monday's $3.525/MMBtu close, on forecasts of cooler weather.
Commodity Weather Group on Tuesday predicted below-average temperatures across the US in its six- to 10-day report.
Still, the contract's strength will be limited by record levels of gas in storage, Citi Futures Perspective analyst Tim Evans said, adding that between now and year-end, the contract will likely trade within a $4/MMBtu to $4.25/MMBtu range.
Mike Fitzpatrick, analyst with the Kilduff Report, said that despite winter demand tightening an oversupplied market, at least one more storage build, around 11 Bcf, should be reported by the US Energy Information Administration on Thursday.
The January contract on Tuesday traded between $3.525/MMBtu and $3.640/MMBtu.
