Natural gas futures advanced in early trading Tuesday, spurred on by continued heat in the latest forecasts and by signs of retreating production volumes. Coming off an 8.7-cent rally in the previous session, the August Nymex contract was up 3.2 cents to $2.701/MMBtu at around 8:40 a.m. ET.

NGI Morning Natural Gas Price & Markets Coverage

The weather data trended warmer overnight, with both the American and European models adding to projected cooling degree day (CDD) totals, according to NatGasWeather. 

“The pattern for mid and late July remains impressively hot” as CDD totals nationally “are near the hottest of the past 40 years” for the upcoming two-week stretch, NatGasWeather said. 

Still, “demand remains subdued” for the Midwest and Great Lakes as “weather systems track through with showers and comfortable...