US natural gas prices (NG1:COM) rallied ~9% Monday, and are set to close at their highest level since 2008. Domestic demand has shown strength this month, as a quick transition from winter heating to summer cooling has increased consumption in the power sector and led to low inventories: LNG export demand has also buoyed prices, as reports suggest export volumes reached a seven-week high. Strength in US natural gas (UNG) has lifted domestic coal prices, while strength in seaborne natural gas has lifted seaborne coal prices; strength in both natural gas and coal has lifted share prices across the energy sector. Peabody (BTU) led the coal names higher, up almost 13%, while CONSOL (CEIX), Alliance (ARLP) and Arch (ARCH) traded higher by ~4%. Southwestern (SWN) was amongst the best performers in the natural gas space, up 8% on the day, in line with EQT (EQT) but underperforming Antero (AR) which rallied 11% on the day. Despite sideways price action in oil markets (USO), large-cap energy performed well on the day, with Chevron (CVX), Exxon (XOM) and Shell (SHEL) up 2-3% as money continued to flow into the sector.