“A quick shot of cold air will lead to the first widespread ice and snow event of the season across the northeast into Tuesday night,” AccuWeather forecaster Kristina Pydynowski said.

?“As quick as the fresh cold and winter storm arrives, milder air will return to close out 2015. However, seasonably colder air should usher back in for the start of the new year.”

Futures for January delivery, which expire Tuesday, rose to $2.266 per million British thermal units, the highest price since Nov. 27, before trading at $2.263 by 6:57 a.m. New York time. The more active February contract gained 1.5 percent to $2.29 per million Btu.

Temperatures will likely drop below normal levels across most of the U.S. from Jan. 3 through Jan. 7, according to the National Weather Service. Temperatures in New York are forecast to fall as low as 22 degrees Fahrenheit (minus 6 Celsius), 5 below average, on Jan. 12, AccuWeather’s website showed.

Eoin Treacy's view

Natural gas had fallen to such low levels by the middle of the month that even a modest change in the balmy weather that has been in evidence across much of Eastern USA and Canada would result in a bounce. 

A short covering rally is now underway and prices have staged an impressive two week rebound to test the progression of lower rally highs. Percentage gain headlines are somewhat misleading because prices have been so low, do not reflect how volatile natural gas prices are or the effect weather can have on sentiment. The overextension relative to the 200-day MA is rapidly being unwound and a sustained move below $2 would now be required to question recovery potential.