The July natural gas contract rallied around 2% on the day as medium-range forecasts trended hotter over the weekend. 

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The role of weather here was very clear with significant prompt month isolation. 

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The July/August N/Q spread accordingly shot higher on the day. 

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The July/October N/V spread did the same as well. 

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This comes as GWDDs decently above historic averages are expected over the next 15 days, as seen in our Morning Update. 

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However, it was hotter afternoon European guidance that really boosted GWDD expectations even further, with solid GWDD additions in our Afternoon Update. Climate Prediction Center forecasts had already increased risks for hotter weather this afternoon regardless. 

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In our Note of the Day today we provided clients with another look at weather-adjusted power burns, which we saw again today played a significant role in price action along the strip (as did weather, of course). These weather-adjusted burns last week played a large role in our expectation for this Thursday's EIA print, of which we got the first small piece of data for when Dominion Transmission (DTI) announced they injected 10 bcf of gas into storage last week. 

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