Natural gas futures started the day higher with help from hotter near-term weather forecasts, while gains remain limited by comfortable storage levels. The market opened with a bullish tilt as traders weighed the latest outlook for cooling demand across the country, watching weather models closely as the summer cooling season shapes demand expectations.

"The next 15 days are back to being solidly bullish as daily national CDDs [cooling degree days] are hotter/above normal each day," Nat Gas Weather.com says in a note. The firm points to sustained above-normal temperatures driving stronger cooling demand in the near term.

The market had shrugged off yesterday's small weekly storage injection as inventories remain well above average. "Next week's EIA report is also expected to print another smaller-than-normal build due to hot temperatures this past week and aided by lighter wind energy generation," Nat Gas Weather.com says. Comfortable inventory levels continue to cap upside momentum despite the supportive weather picture.

Nymex natural gas is up 1.6% at $2.777/mm Btu. The modest advance reflects a market balancing bullish weather signals against ample supply.