U.S. natural gas prices rebounded Monday and were set to maintain momentum as benchmarks in Asia and Europe continued to cool. 

“Daily demand is set to rise mid-week, adding as much as 5.5 Bcf/d by Wednesday and coinciding with the May contract rollover,” said EBW Analytics Group analyst Eli Rubin of the Henry Hub contract.  “Trader positioning after the April rally and ahead of options expiration tomorrow is likely to be a primary driver of natural gas prices in the immediate term.”

Henry Hub has averaged $3.30/MMBtu since 2009, but the contract broke through the $8 barrier in intraday trading last week to a level not seen since 2013. Profit taking saw the benchmark finish lower last week, but fluctuating natural gas supplies, low storage inventories, strong overseas...