A large increase in weather-driven demand expectations overnight from one of the major weather models had natural gas futures trading sharply higher as of early Wednesday. With prompt month expiration looming, the February Nymex contract was up 33.2 cents to $4.385/MMBtu at around 8:40 a.m. ET. March was up 29.7 cents to $4.191. 

NGI Morning Natural Gas Price & Markets Coverage

Overnight, the European weather model underwent a “major cold move,” adding close to 20 gas-weighted degree days versus its projections as of Tuesday afternoon, Bespoke Weather Services said.

“Consensus supports moving the official forecast solidly in the colder direction,” the firm told clients early Wednesday. “Confidence is even lower today, however, as the signals we see from tropical forcing do not seem to support this kind of cold...