Further declines in projected cooling demand in the latest forecasts pressured natural gas futures lower in early trading Tuesday, although analysts were predicting volatility heading into this week’s front month expiration. As of 8:45 a.m. ET, the August Nymex contract was down 8.2 cents to $4.020/MMBtu, while September was off 8.3 cents to $3.999.

NGI Morning Natural Gas Price & Markets Coverage

After a volatile session on Monday, natural gas futures managed to finish the day in positive territory even with “major” losses in projected cooling degree days (CDD) from midday weather model runs, according to analysts at EBW Analytics Group.

“With options expiring today and contract expiration tomorrow, near-term volatility is likely to remain high,” the EBW analysts said in a note to clients early Tuesday. “With the...