U.S. natural gas futures saw a cautious rise in early trading, remaining under the $3 per million British thermal units mark. This trading range reflects a standoff between bullish and bearish forces, influenced by short-term weather forecasts that are only slightly skewed towards increased demand.

While cooling demand is expected to provide some support, it's currently insufficient to counteract a projected expansion in storage surplus, which could reach 200 Bcf. Ritterbusch & Associates noted this potential oversupply.

However, the firm also highlighted the possibility of a significant supply tightening in the coming month. This could occur if LNG exports rebound, especially if the summer proves to be exceptionally hot. Nymex natural gas futures were up 1.3% at $2.903/mm Btu.