Investing.com - U.S. natural gas futures started the week with strong gains on Monday, climbing towards a two-week high amid colder forecasts for the end of January.
Natural gas for February delivery on the New York Mercantile Exchange rallied nearly 2.2% to a session high of $3.495 per million British thermal units, a level not seen since January 3.
It was last at $3.486 by 8:35AM ET (13:35GMT), up 6.7 cents, or around 2%.
Trading is likely to be quiet because U.S. markets are closed for Martin Luther King Jr. Day.
Prices of the heating fuel scored a weekly gain of around 4.1% last week, on a bigger-than-expected weekly storage draw and cold forecasts.
Futures remained supported as forecasts for the end of January turned colder, boosting demand for the heating fuel.
Weather models initially predicted mild temperatures throughout most parts of the U.S. during the period.
Natural-gas markets have been volatile in recent weeks, changing course rapidly in response to shifting outlooks in short-term weather patterns.
Prices typically rise during the winter as colder weather sparks indoor-heating demand. About half of U.S. homes use natural gas for heating.
Meanwhile, market participants looked ahead to weekly storage data due on Thursday, which is expected to show a draw in a range between 220 and 230 billion cubic feet in the week ended January 13.
That compares with a withdrawal of 151 billion cubic feet in the preceding week, 178 billion a year earlier and a five-year average drop of 170 billion cubic feet.
Total natural gas in storage currently stands at 3.160 trillion cubic feet, according to the U.S. Energy Information Administration, 10.3% lower than levels at this time a year ago and around 0.1% below the five-year average for this time of year.