Natural gas futures continued riding high in early trading Wednesday, adding to their recent gains as analysts noted continued tightness in the supply/demand balance. The expiring May Nymex contract was up 3.7 cents to $2.910/MMBtu at around 8:45 a.m. ET. June was up 3.5 cents to $2.977.

NGI Morning Natural Gas Price & Markets Coverage

The May contract surged 8.3 cents in Tuesday’s session, a rally that analysts at EBW Analytics Group attributed to a “confluence of factors,” including a “huge surge in European gas prices” and a drop in Lower 48 dry gas production.

Also at play in the rally was “continued short-covering” among traders and “a surge in prices at Henry Hub, which climbed 16 cents, as storage operators start to reprice physicals in response to the recent jump in the forward curve,” the EBW...