U.S. natural gas futures climbed Monday as traders positioned ahead of the July contract expiration, buoyed by forecasts calling for above-normal temperatures across much of the country over the next two weeks. Hot weather typically drives air conditioning demand, supporting gas consumption during peak usage periods.

Eli Rubin of EBW Analytics noted that while settlement positioning dominates Tuesday's session, the potential for record heat heading into the July 4th weekend could strengthen physical demand and push Nymex futures higher. The heat-driven rally comes despite rising production levels that may cap longer-term upside momentum.

The July contract gained 0.5% to $3.360 per million British thermal units, while August delivery rose 1% to $3.328. These price movements reflect near-term supply-demand dynamics rather than fundamental shifts in the market structure.

With summer cooling demand expected to intensify, the weather-gas price correlation remains the primary driver for traders through the peak consumption months. The market's focus on short-term fundamentals suggests volatility may persist through the traditional summer pricing season.