January Nymex natural gas futures extended a relief rally into the fourth trading day Monday as hints of colder January weather provided some support, but weather and fundamental outlooks suggested the upside movement would be short-lived.

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The front-month contract settled at $2.503/MMBtu, up 1.2 cents from Friday but well off an early high of $2.597. February futures closed at $2.416. The contract reversed early gains off Friday’s $2.425 settlement.

NGI’s Spot National Avg. jumped 28.0 cents to $2.555. The West Texas prices were lower against a broad uptrend as soft demand downstream in California weakened prices.

Gelber & Associates analysts said the January futures move higher today was likely “a relief rally” driven by profit-taking from speculators, which is...