Rising cooling demand expectations in recent weather model runs had natural gas futures rebounding sharply in early trading Tuesday. The July Nymex contract was up 9.2 cents to $3.162/MMBtu at around 8:50 a.m. ET.

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After settling 2.7 cents lower at $3.070 in Monday’s session, the July contract “quickly rebounded” in after hours trading following a run of the European weather model that showed a large increase in projected cooling degree days (CDD), analysts at EBW Analytics Group said.

The CDD increase resulted from projections for weaker cooling in the Midwest and East next week, according to the firm.

“Overnight, the European model kept its late-day gains, and the American, while still cooler, posted its own large gain,” the EBW analysts said. “With both models...