New York, Jan 21, 2026, 17:17 EST — Trading after the bell.
- February Henry Hub natural gas futures jumped almost 25%, climbing roughly 57% across the last two sessions.
- U.S. Natural Gas Fund (UNG) surged roughly 10% amid gains in gas-related stocks.
- Traders are focused on Thursday’s EIA storage report alongside the latest storm and temperature forecasts.
U.S. natural gas prices jumped once more on Wednesday, boosting gas-related stocks and ETFs as traders adjusted to a colder forecast and scrambled to cover short positions. February Henry Hub futures closed up 24.78% at $4.875 per million British thermal units (mmBtu), the benchmark pricing unit for U.S. gas. 1
The rally is driven by an “unexpected Arctic blast,” with sub-zero temperatures forecast to move from the Northern Plains to the Northeast by Sunday, then push down to the Gulf Coast early next week, according to the National Weather Service. U.S. natural gas futures surged to a six-week high, jumping a record 57% over the last two trading sessions. This comes after earlier forecasts this month had predicted warmer weather, TACenergy, a fuel distributor, noted in a report. 2
Ole R. Hvalbye, a commodities analyst at SEB, noted that “the weather premium has kicked in hard,” citing forecasts dropping “well below normal” from about Jan. 23 through early February. Art Hogan, chief market strategist at B. Riley Wealth, attributed the move to a “decisively colder” shift in models combined with rapid short-covering. Meanwhile, Eli Rubin of EBW Analytics said the two-day rally highlighted “the extent of short covering” after funds amassed their largest short position in 14 months. 3
After-hours saw the U.S. Natural Gas Fund jump roughly 10%, hitting $13.64. EQT climbed around 6.5% to $54.83. Expand Energy edged up about 4.6% to $109.50, and Antero Resources increased close to 4%, landing at $34.24.
Kinder Morgan, a leading U.S. pipeline operator, boosted the sector’s momentum after topping Wall Street profit forecasts, driven by increased natural gas volumes moving through its system. The company reported transporting 48,353 billion British thermal units per day last quarter, up from 44,507 billion a year earlier. Its project backlog also climbed to $10 billion from $9.3 billion in the previous quarter. Shares gained 1.4%, reaching $28.99 in after-hours trading. 4
Looking further ahead, the market is grappling with a surge of new global LNG supply set for 2026, which analysts warn could put downward pressure on prices and shrink the spreads to U.S. Henry Hub. Kpler described 2026 as “a transitional year,” with the market shifting from tight conditions to “ample availability.” 5
The near-term trade remains a weather gamble and can shift abruptly. If forecasts ease or freeze-related supply hits don’t materialize, the squeeze could unravel just as fast as it appeared, exposing late buyers to steep declines.
Thursday brings the U.S. Energy Information Administration’s weekly natural gas storage report, set for 10:30 a.m. Eastern. This release frequently sparks sharp moves and heavy volume in the front-month contract. 6
The latest EIA figures reported working gas in storage at 3,185 billion cubic feet (Bcf) as of Jan. 9, marking a 71 Bcf drop from the previous week. 7
Traders are watching updated temperature forecasts through the weekend, looking for any sign the cold will hit crucial producing and consuming areas—especially across the central U.S. and stretching to the Gulf Coast early next week.
