Natural gas futures climbed in early trading Friday as surging physical prices and production freeze-offs illustrated the impact of frigid temperatures sweeping through the Lower 48. The March Nymex contract was up 5.7 cents to $2.925/MMBtu at around 8:45 a.m. ET.

NGI Morning Natural Gas Price & Markets Coverage

The weather models trended warmer overnight, according to Bespoke Weather Services. The firm attributed the strength in futures prices early Friday to soaring prices in the physical market driven by “the incoming wave of extreme cold.”

“We also see a couple Bcf in production freeze-offs this morning, aiding the cash/physical strength,” Bespoke said. “…If current models hold with their moderation late month into early March, it is likely that prices fall again at least back into the $2.80s once the excitement...