With updated weather models continuing to predict intense cold in the Lower 48 later this month, natural gas futures were up sharply in early trading Wednesday. The February Nymex contract had rallied 18.7 cents to $4.436/MMBtu as of around 8:45 a.m. ET.

NGI Morning Natural Gas Price & Markets Coverage

The European weather model shifted “decidedly colder” overnight, a development that was “clearly capturing market sentiment” early Wednesday, according to Bespoke Weather Services. The firm said its updated forecasting showed colder trends, with late January on track to deliver frigid temperatures to key parts of the Lower 48.

“Models continue to advertise a very strong cold pattern in the eastern two thirds of the nation as we move through the final third of the month, with no sign yet of any re-warming” at the end...