NEW YORK: US natural gas futures edged up about 1% on Tuesday to a fresh eight-month high on rising exports and higher global gas prices.

That price increase came despite forecasts for milder weather and less heating demand over the next two weeks than previously expected. Front-month gas futures for November delivery on the New York Mercantile Exchange rose 2.7 cents, or 0.8%, to $3.403 per million British thermal units (mmBtu) at 8:47 a.m. EDT, putting the contract on track for its highest close since Jan. 23 for a third day in a row.

That also put the front-month up for a sixth day in a row for the first time since March and kept it in technically overbought territory, with a relative strength index (RSI) above 70, for a fourth day in a row for the first time since July 2022.

In Europe, gas prices at the Title Transfer Facility (TTF) benchmark in the Netherlands soared about 14% to around $15 per mmBtu on worries about global supplies due to violence in the Middle East and colder weather forecasts.

The US National Hurricane Center said there was a 30% chance a tropical cyclone could form in the western Gulf of Mexico over the next week. Traders noted a storm in that area could boost prices by reducing supplies if it moves toward Texas or Louisiana.

In the US spot market, next-day gas for Tuesday at the Henry Hub benchmark in Louisiana rose to $3.30 per mmBtu, its highest since January 2023 for a second day in a row.

But the spot market will continue to weigh on US futures so long as next-day prices remain below the front-month.