NEW YORK, Jan 21, 2026, 10:40 EST — Regular session
- U.S. natural gas futures pushed higher again Wednesday, with traders betting on a deep freeze hitting in late January.
- Shares tied to natural gas and the UNG ETF climbed during morning trading.
- Traders are eyeing the latest weekend storm forecasts alongside Thursday’s U.S. storage data.
U.S. natural gas futures surged once more Wednesday, with the front-month Henry Hub contract climbing about 23% to around $4.80 per million British thermal units (mmBtu), after hitting a session peak near $4.98. That marked a gain of roughly 87 cents from Tuesday’s close at $3.907. 1
The shift caught attention as weather takes center stage once more. Natural gas, essential for heating and power, sees demand swing sharply during cold snaps. According to the National Weather Service’s New York office, confidence is growing for a winter storm from Sunday into Monday, with the coldest air mass of the season likely to persist through much of the forecast. 2
Eli Rubin, an energy analyst at EBW Analytics Group, warned that “frigid weather” over the Martin Luther King Jr. weekend could cause “severe market dislocation” and strain supplies in multiple regions. He also noted that speculator short positions hit a 14-month peak, increasing the chance of short covering as losses pile up. 3
Natural gas-linked stocks jumped alongside futures. The United States Natural Gas Fund (UNG) climbed roughly 8.5%. EQT, the sector’s leading producer, gained about 5%. Range Resources and Antero Resources both added between 4% and 5%, while Comstock Resources surged around 8%. Coterra Energy and Devon Energy rose roughly 2% and 4%, respectively. LNG exporter Cheniere and pipeline operator Williams both eked out gains near 1%.
Traders are eyeing potential “freeze-offs” — production halts caused by freezing temps — especially in Texas. Atmospheric G2 flagged that “all signs point to major Arctic cold outbreaks” hitting the eastern two-thirds of North America next week, according to Barchart. 4
Coterra and Devon have more than just weather in play. According to TradingView, the two firms are discussing a possible merger, though the talks remain preliminary with no guarantee a deal will materialize. 5
Fundamentals remain mixed. The latest EIA weekly report put U.S. gas inventories at 3,185 billion cubic feet—roughly 3% above the five-year average. It also noted the most recent withdrawal was just 71 Bcf, well below the typical five-year draw for the same week. 6
The LNG market is gearing up for a shift beyond just the weather-driven trade. Analysts predict at least 35 million metric tons of new LNG export capacity hitting the market in 2026, mainly from the U.S. and Qatar. This surge could weigh on global prices and tighten spreads against the U.S. Henry Hub benchmark, according to Reuters. 7
Traders are eyeing Thursday’s EIA storage report, due out at 10:30 a.m. Eastern, for a clearer picture of how quickly the cold snap is draining inventories. Updated storm forecasts through the weekend will also play a key role. 8
At the moment, the market is factoring in a short-term squeeze, though there’s considerable doubt about its duration.
