Riding technical momentum and drawing support from hefty declines in the latest production estimates, natural gas futures surged higher in early trading Tuesday. As of around 8:50 a.m. ET, the September Nymex contract was up 51.6 cents to $9.244/MMBtu.

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In Monday’s session, prices rebounded after a test of support at $8.40, EBW Analytics Group senior analyst Eli Rubin observed.

“Robust technical support suggests the rally may push higher in the immediate term, with the front month already clearing the $9.00 psychological level early this morning,” Rubin said.

Day/day changes in the fundamental outlook were mixed early Tuesday, according to the analyst.

Weather-driven demand “continues to deteriorate” as updated forecasts shed cooling degree days for the central...