NEW YORK, Jan 2, 2026, 10:04 ET — Regular session
- U.S. natural gas futures were down nearly 3% in early trade, extending a year-end pullback.
- Gas-heavy producers EQT, Antero and Range fell 1%–3%, while the UNG ETF slid more than 3%.
- Traders are focused on warmer temperature outlooks and the next U.S. storage data.
U.S. natural gas-linked stocks slipped on Friday as gas futures fell on expectations of weaker heating demand in early January.
The move matters because winter weather changes can quickly swing consumption, storage withdrawals and cash flow expectations for producers that are most exposed to the U.S. benchmark price.
It also sets the tone for the first full trading day of 2026 after a late-December selloff tied to a smaller storage withdrawal and milder forecasts.
U.S. natural gas futures were trading at about $3.58 per million British thermal units (mmBtu), down about 11 cents, or nearly 3%. A mmBtu is a standard energy unit used to price wholesale gas. 1
In U.S. stocks, EQT fell 1.5% to $52.79, Antero Resources slid 2.8% to $33.51 and Range Resources dropped 1.9% to $34.58, based on the latest available pricing during the session. The United States Natural Gas Fund (UNG), an exchange-traded fund that tracks gas futures, was down about 3.5%, while LNG exporter Cheniere was little changed.
Government data released on Dec. 31 showed working gas in U.S. underground storage at 3,375 billion cubic feet (Bcf) for the week ended Dec. 26, a decline of 38 Bcf from the prior week. Stocks were 55 Bcf below the year-ago level and 58 Bcf above the five-year average; the next release is scheduled for Jan. 8. 2
Updated temperature outlooks have kept traders cautious about near-term demand. The National Weather Service’s Climate Prediction Center said its latest 8–14 day outlook favored above-normal temperatures across much of the southern central and eastern United States for Jan. 9–15, while parts of the West and northern central U.S. leaned near to below normal. 3
Financial firm LSEG projected average Lower 48 gas demand, including exports, would ease next week versus this week, according to a Reuters report. “Given this weather and the drawdown number, there’s really not a whole lot of room for the natural gas prices to go up,” said Zhen Zhu, a managing consultant at C.H. Guernsey and Company in Oklahoma City. The same report cited LSEG data showing December output and LNG feedgas flows at record levels. 4
Beyond the weather trade, investors are weighing whether export growth can keep pace with supply. LNG, or liquefied natural gas, has been one of the fastest-growing demand channels for U.S. producers as more export capacity comes online along the Gulf Coast.
The Energy Information Administration’s latest Short-Term Energy Outlook projects U.S. dry gas production averaging about 109.1 billion cubic feet per day in 2026 and LNG exports rising to about 16.3 billion cubic feet per day. EIA forecasts the Henry Hub benchmark price averaging about $4.01 per mmBtu in 2026. 5
For now, traders are watching daily weather model updates and signs of whether withdrawals accelerate as the core winter period approaches.
They are also tracking LNG feedgas flows and any shifts in production as producers adjust activity and hedging plans.
The next U.S. storage figures and temperature runs will likely dictate whether the early-2026 dip in gas and gas-linked equities extends or stabilizes.
