Natural gas futures surged higher in early trading Monday as traders and analysts gauged the potential energy impacts of another tropical cyclone bearing down on the Gulf Coast in the wake of Hurricane Ida. As of around 8:50 a.m. ET, the October Nymex contract had rallied 23.8 cents to $5.176/MMBtu.

NGI Morning Natural Gas Price & Markets Coverage

Tropical Storm Nicholas was on track to “pass near or just offshore” the South Texas coast Monday morning, according to the National Hurricane Center. The storm was then expected to move onshore along the coast of southern or central Texas by Monday afternoon or evening.

“Strengthening is forecast today, and Nicholas could reach the northwest Gulf Coast as a hurricane,” forecasters said. “Weakening is anticipated on Tuesday and Wednesday while Nicholas moves over...