The NYMEX June natural gas futures contract continued to rally overnight and at 8:46 am EDT (1246 GMT) was trading at $4.386/MMBtu, up 4 cents from Monday's $4.346/MMBtu closing price.
The contract rose 11.6 cents on Monday on forecasts of above-normal temperatures for much of the US in coming weeks. Those forecasts continued to push the contract higher overnight, according to TFS Energy Futures.
"Weather forecasts are little-changed from [Monday], with above- to well-above-normal temperatures expected across much of the eastern half of the country in the coming weeks, with the exception of the upper Midwest which is expected to see normal to below-normal temperatures over the next five days," the firm said.
According to the Commodity Weather Group, weather is expected to be hotter in the Midwest over the next six-to-10 days, while heat is expected to be "widespread" over the Central and Eastern US in the 11-to-15 day forecasts.
The contract was ranging between $4.310/MMBtu and $4.397/MMBtu in electronic trading.
