- U.S. February Henry Hub natural gas futures traded around $4.10 per mmBtu, up about 3%. 1
- The United States Natural Gas Fund (UNG) rose about 3.8% in early trade, while major producers EQT and Antero Resources also gained.
- Traders are watching early-January weather signals and the next U.S. storage report due December 31. 2
U.S. natural gas prices firmed on Tuesday, lifting the United States Natural Gas Fund (UNG) and shares of major gas-linked names as the winter demand picture tightened. 1
The move matters now because storage withdrawals are accelerating into year-end just as forecasters flag colder risks for parts of the U.S. Northeast. In winter, small shifts in temperature can quickly swing heating demand and prices. 3
It also comes with liquefied natural gas (LNG) export demand running near record levels, keeping a steady pull on U.S. supply even when domestic consumption eases. LNG “feedgas” is the pipeline gas delivered to export plants for liquefaction. 4
February Henry Hub natural gas futures traded at about $4.099 per million British thermal units (mmBtu), up 11.3 cents, according to Barchart data. 1
UNG, which is designed to track day-to-day moves in near-month NYMEX natural gas futures, rose 3.8% to about $13.54. EQT gained about 0.8% and Antero Resources rose about 2.1%, while LNG exporter Cheniere Energy and pipeline operator Kinder Morgan were also higher.
A key catalyst was the U.S. Energy Information Administration’s weekly storage report, released Monday due to holiday scheduling. Working gas in storage fell by 166 billion cubic feet (Bcf) in the week ended Dec. 19 to 3,413 Bcf, leaving inventories 24 Bcf below the five-year average, the EIA said. 3
Weather remains the next major driver. NOAA’s Climate Prediction Center said its 6–10 day outlook favored near- to below-normal temperatures for much of the Northeast U.S., a region where cold snaps tend to lift heating demand quickly. 5
Private forecasters have also pointed to a colder early-January window. Atmospheric G2 said colder-than-normal temperatures were expected across the U.S. Northeast for Jan. 3–7, according to Barchart’s market commentary. 6
Export demand has been the other leg of support. Average flows to the eight large U.S. LNG export plants rose to 18.5 billion cubic feet per day (bcfd) so far this month, up from the prior monthly record of 18.2 bcfd in November, Reuters reported, citing LSEG data. 4
LSEG also pegged average Lower 48 output at a record 110.1 bcfd in December, a supply-side offset that has kept traders sensitive to whether cold weather disrupts production or simply boosts demand. 4
“Forecasts are turning back colder a little bit and with this wicked winter weather, people are starting to buy,” Phil Flynn, senior analyst at Price Futures Group, said in the Reuters report. 4
For the next move, traders are focused on the next EIA storage report scheduled for Wednesday, Dec. 31 at 12:00 p.m. ET, and on whether updated weather models extend the Northeast cold risk deeper into January. 2
Technicals are also in view after the market reclaimed the $4 handle. Barchart’s key levels put first resistance near $4.081 and first support around $3.839 for the February contract, levels that can attract short-term trading interest when prices are choppy. 1
