Natural gas futures extended gains on Tuesday, as traders absorbed news of weather forecasts shifting even colder after a similar change in models over the weekend. The weather outlooks increased the likelihood of robust heating demand the rest of January and into early February, fueling futures.

Markets

The February Nymex gas futures contract settled at $2.656 on Tuesday, up 5.4 cents day/day. Both the domestic and European weather models produced forecasts that, if they hold up, could make the coming two weeks colder than the five-year average. On Monday, the prompt month surged 15.6 cents.

March also advanced on Tuesday, rising 3.8 cents to $2.636. March takes over as the prompt month with Thursday’s trading.

Futures caught “a dead of winter skew to the upside,” as Mizuho...