Buoyed by forecasts showing frigid temperatures finding their way into the Lower 48 later this month, natural gas futures rallied in early trading Tuesday. The February Nymex contract had surged 11.8 cents to $2.865/MMBtu as of 8:40 a.m. ET.

NGI Morning Natural Gas Price & Markets Coverage

Overall gas-weighted degree day expectations were largely unchanged day/day in the latest Bespoke Weather Services forecast early Tuesday. However, the firm noted colder trends in the 11-15 day time frame as models showed potential for “strong cold at least from the Midwest westward.”

“Models over the last couple of cycles have abruptly moved toward” a combination of a negative Eastern Pacific Oscillation and negative North Atlantic Oscillation in the medium term, Bespoke said. This “will develop a strong cold source up in Canada...