• Weather outlooks increased the likelihood of robust heating demand
  • LNG export levels gathered new momentum
  • Cash prices climbed for a third straight day

Natural gas futures extended gains on Tuesday, as traders absorbed news of weather forecasts shifting even colder after a similar change in models over the weekend. The weather outlooks increased the likelihood of robust heating demand the rest of January and into early February, fueling futures.

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The February Nymex gas futures contract settled at $2.656 on Tuesday, up 5.4 cents day/day. Both the domestic and European weather models produced forecasts that, if they hold up, could make the coming two weeks colder than the five-year average. On Monday, the prompt month surged 15.6 cents.

March also advanced on Tuesday, rising 3.8...