• Natural gas futures surged 5% on Monday
  • Forecasters pointed to a favorable shift in the weather outlook
  • U.S. LNG export demand is expected to remain strong

Natural gas futures surged on Monday, as bulls seized upon forecasts for a burst of early summer heat in the heavily populated Northeast and early predictions for a relatively modest storage injection.

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The June Nymex contract spiked 14.8 cents day/day and settled at $3.109/MMBtu. July rose 14.6 cents to $3.164.

Cash prices climbed, too, led upward by jumps at eastern hubs. NGI’s Spot Gas National Avg. jumped 23.0 cents to $2.835.

A favorable shift in the weather outlook for the next two weeks ignited the optimism in markets. Bespoke Weather Services said Monday that it added seven gas-weighted degree days to its...