Traders looked past a tilt toward cooler weather in new forecasts and focused instead on near-term heat and expectations for both strong domestic demand and U.S. exports over the balance of summer, sending natural gas futures higher on Monday.

EIA Storage Estimate

At A Glance:

  • Traders zero in on near-term heat
  • LNG demand to surge further
  • Outlooks call for strong cash prices

Natural gas futures bounced back on Thursday, bolstered by an anemic increase in inventories that pointed to a tight supply/demand balance and ignited concerns about adequate storage levels. The August Nymex contract spiked 9.2 cents day/day and settled at $3.688/MMBtu. September jumped 9.3 cents to $3.667.

The August Nymex contract gained 7.5 cents from the prior week’s close and settled at $3.749/MMBtu. September natural...