09:26 AM EDT, 05/13/2025 (MT Newswires) -- Natural gas moved higher early on Tuesday on expectations supply will tighten even as long-term forecasts see little summer heat on the way to boost cooling demand.

Gas for June delivery was last seen up US$0.05 to US$3.70 per million British thermal units.

The rise comes as U.S. gas supplies are likely to weaken amid expectations oil drilling will slow as prices decline, lowering associated-gas production.

"We expect the crude market to tip into meaningful oversupply in H2'25 pushing WTI to or below $55/bbl in the back half of the year which, along with efficiency gains, will drive a meaningful drop in the US rig count (TPHe 95 oil-directed rigs), setting the stage for associated gas growth meaningfully decelerating," Tudor, Pickering, Holt analyst Matt Portillo wrote.

However mild long-term forecasts are checking prices, as the market waits on the arrival of summer heat that will boost cooling demand. The National Weather Service's six to 10 day outlook expects most states to see cooler than seasonal temperatures over the period, though Texas and other southern states will be warmer than seasonal.