NEW YORK, Jan 7, 2026, 15:34 (EST) — Regular session
Key points:
- U.S. front-month natural gas futures rose about 6% to around $3.55 per mmBtu on Wednesday.
- Weather outlooks are turning choppier, with colder risks building for mid-January in key demand regions.
- The next catalyst is Thursday’s EIA storage report, a key gauge of winter withdrawals.
U.S. natural gas futures climbed nearly 6% on Wednesday, rebounding from a $3.35 close a day earlier as traders leaned on a colder mid-month weather picture. The front-month Henry Hub contract was around $3.55 per million British thermal units (mmBtu), after trading between $3.42 and $3.59 on the day. 1
The bounce matters now because the market has been trading the weather first and everything else second. A few warmer model runs have been enough to push prices down sharply; a colder run can flip the tape just as fast, especially when storage data is due.
Natural gas demand in winter hinges on space heating and power burn, and traders often translate that into “heating degree days” — a rough measure of how much heating demand temperatures imply. When the market starts arguing over a mid-month cold shot, the storage math for the next couple of weeks moves with it.
The National Weather Service’s Climate Prediction Center said a pattern shift should drive a downward temperature trend across much of the East, even as the early part of the outlook window stays mild. The agency’s discussion flagged the best odds for colder conditions expanding later in the period across areas east of the Rockies, a setup that typically pulls more gas into residential and commercial heating demand. 2
Commodity Weather Group said colder conditions are now projected for parts of the Midwest and East Coast around Jan. 17–21, and Barchart said that helped trigger short covering in natural gas. BloombergNEF estimates cited by Barchart put lower-48 dry gas production at 112.6 billion cubic feet per day (bcfd) on Wednesday, with demand at 89.5 bcfd and LNG net flows to U.S. export terminals at 18.4 bcfd. 3
LNG remains a swing factor in the broader price outlook, even when the day-to-day trade is weather. EOG Resources finance chief Ann Janssen said on Wednesday that the buildout of liquefied natural gas infrastructure could eventually lead to oversupply and weigh on natural gas prices. 4
The next hard datapoint is storage. Working gas in U.S. storage was 3,375 billion cubic feet (Bcf) as of Dec. 26, down 38 Bcf on the week and about 1.7% above the five-year average, EIA data showed; the next report is scheduled for Thursday. 5
Technically, Wednesday’s range puts the market back within sight of the $3.60 area, with support building around the mid-$3.40s. But the downside case is still simple: if warmer forecasts reassert themselves and withdrawals stay light, futures can slip back toward the low-$3.30s quickly.
Traders are watching Thursday’s EIA storage release — normally published at 10:30 a.m. Eastern on Thursdays — for confirmation that colder risks are translating into bigger draws, and whether the weather models hold onto that mid-January chill. 6
