New York, Jan 23, 2026, 13:53 EST — Regular session
- February Henry Hub natural gas futures climbed 22.7 cents, hitting $5.272/mmBtu in early afternoon trading
- The EIA reported a 120 Bcf draw from storage last week, though inventories remain above the five-year average
- Gas-linked ETF UNG jumped over 4% amid concerns about freeze-offs and rising power demand risks
U.S. natural gas futures pushed higher on Friday, with the February Henry Hub contract climbing 22.7 cents to $5.272 per million British thermal units (mmBtu) in early afternoon trading. The front-month contract is due to expire on Jan. 28. 1
Traders are on alert for a winter storm threatening major gas-producing areas, where “freeze-offs” — cold-induced blockages in wells and pipelines — could slash supply. Texas Governor Greg Abbott declared a disaster across 134 counties and insisted the ERCOT grid “has never been stronger or more prepared.” 2
PJM Interconnection flagged precautionary alerts before the cold snap, warning peak demand might top 130,000 megawatts for seven consecutive days next week. “This is a formidable arctic cold front coming our way,” said Mike Bryson, PJM’s senior vice president for operations. 3
Storage remains ample despite rising withdrawals. The U.S. Energy Information Administration logged net withdrawals of 120 billion cubic feet (Bcf) for the week ending Jan. 16, leaving 3,065 Bcf in storage—roughly 6% above the five-year average. The agency also reported Henry Hub spot gas at $4.98 on Jan. 21 and noted that 37 LNG vessels, totaling 139 Bcf of capacity, set sail from U.S. ports between Jan. 15 and Jan. 21. 4
Volatility ruled the tape. The February contract closed Thursday at $5.045, swinging between a high of $5.650 and a low of $4.900, according to Sprague Energy. 5
Aegis Hedging reported that the same contract fluctuated between $4.67 and $5.665 from Thursday through early Friday. It estimated dry-gas production at 105.2 billion cubic feet per day (bcfd), with Canadian imports surpassing 9 bcfd, referencing S&P data. 6
Gas-linked stocks followed suit. The United States Natural Gas Fund climbed roughly 4.1%. EQT gained around 1.8%, and Range Resources inched up about 0.3%. Antero Resources barely moved, while LNG exporter Cheniere Energy picked up close to 0.7%.
Supply response is still uncertain. Baker Hughes said the U.S. gas rig count stayed flat at 122 this week, while total rigs ticked up by one to 544. The EIA projects U.S. gas output to climb to 108.8 bcfd in 2026, even though Henry Hub prices are expected to dip slightly. 7
Still, the rally shows a weak link: storage remains above normal levels. A slight shift in forecasts or a swift rebound in freeze-off volumes could send futures tumbling, particularly as positions roll forward ahead of February expiry.
Traders will be watching updated temperature models coming out over the weekend, along with PJM’s load forecasts through Jan. 27. The Feb contract expires Jan. 28, and the next storage report is set for Jan. 29.
