U.S. natural gas futures started the week higher as weekend weather forecasts increased expectations for short-term demand. According to a report from Ritterbusch and Associates, the impact of anticipated lower temperatures on natural gas futures prices is more significant than the recent rebound in oil prices.

The firm further noted that based on the latest Commitments of Traders report, net short positions in the market have continued to rise, indicating that the market is now firmly in a bullish uptrend. Although this week's inventory data from the U.S. Energy Information Administration is likely to show an expansion of the supply surplus, this excess could be quickly absorbed if summer temperatures exceed historical averages. Given the recent volatility in climate patterns, the probability of a hotter-than-normal summer remains high.

Natural gas futures on the New York Mercantile Exchange rose 1.8% to $2.723 per million British thermal units.