U.S. natural gas futures are higher in early trading as extremely hot weather, particularly across the southern United States, is expected to drive power-sector demand through at least two more weeks. "Overall, weather patterns are viewed as bullish the front 10 days, but then closer to seasonal for the 11-15 day period," Nat Gas Weather.com says in a note. "We expect a volatile week in the natural gas markets and partly due to approaching expiration of Sep'26 options and futures," the forecaster adds.

Nymex natural gas is up 1.7% at $2.821/mm Btu.

The market is reacting to sustained heat waves that typically boost electricity consumption, which in turn increases demand for natural gas used in power generation. With options and futures contracts set to expire soon, traders are positioning themselves ahead of potential price swings.

Analysts note that the near-term outlook remains supportive for prices, though the longer-range forecast suggests a moderation in demand factors.