Fueled by continued hotter trends in the latest forecast and supply concerns, natural gas futures extended their recent gains in early trading Wednesday. The August Nymex contract was up 4.7 cents to $3.923/MMBtu at around 8:50 a.m. ET.

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After settling sharply higher in Tuesday’s session, futures continued to climb overnight.

Analysts at EBW Analytics Group attributed the recent “surge” in natural gas prices primarily to higher demand expectations for the second and third upcoming storage weeks and to “soaring” prices in the physical market.

“Henry Hub gained 8.5 cents yesterday, averaging $3.83, even though day-ahead demand was much lower than next week’s expected peak demand,” the EBW analysts said.

Prices could pull back in the event of a disappointing...