New York, Jan 26, 2026, 17:19 EST — After-hours
- U.S. front-month Henry Hub natural gas futures jumped close to 30%, settling at $6.80 per mmBtu—the highest finish since December 2022
- Production took a hit from freeze-offs and storm damage, squeezing power grids and pushing up short-term demand and volatility
- The United States Natural Gas Fund (UNG) surged nearly 6%, as key gas producers gained ground, but LNG exporters slipped behind
U.S. natural gas futures soared once more on Monday, climbing almost 30% to close at $6.80 per million British thermal units (mmBtu). This marked their highest finish since December 2022. The spike came after a winter storm hit energy infrastructure hard, causing producers to halt output. 1
The rally is hitting electricity markets fast, driven by heating demand clashing with tight gas supplies. Pieter Mul, associate partner at PA Consulting’s energy and utilities practice, noted, “Without native supplies of natural gas, the Eastern seaboard relies on a pipeline network that is historically constricted during extended bouts of frigid weather.” 2
This also underscores that the U.S. gas market no longer operates in isolation. LSEG projects U.S. demand this week at 156 billion cubic feet per day (bcfd), even as colder weather cuts output. That ripple can hit global gas prices via LNG. “Markets such as TTF and (U.S.) Henry Hub are now structurally more volatile,” said Mashal Jaffery, partner at gas and LNG advisory Baringa. 3
LSEG data revealed Lower 48 output dropped to 92.6 bcfd on Sunday, marking a two-year low as “freeze-offs” — when water and other liquids freeze and block wells and pipelines — hit Texas and Louisiana. Gas flows into LNG export plants, or feedgas, dipped to a one-year low Sunday before climbing slightly on Monday, according to the data. 4
Inventories weren’t tight before the storm, which partly explains why the price jump caught many off guard. The latest federal storage report, covering the week ending Jan. 16, showed a 120 billion cubic feet (Bcf) withdrawal. That left working gas at 3,065 Bcf—roughly 6% above the five-year average. The agency also announced a new weekly storage supplement set to begin on Jan. 29. 5
Natural-gas-linked stocks moved with the tape, though unevenly. The United States Natural Gas Fund, an ETF tracking near-dated U.S. gas futures, climbed roughly 6%. Leading producers EQT, Antero Resources, and Range Resources rose between about 1% and 3%. Meanwhile, LNG exporter Cheniere Energy edged down around 0.5%.
But the setup cuts both ways. The futures curve has flipped into steep “backwardation”—with the front-month contract trading well above later ones. March sits around $3.90, while February touched nearly $6.80. This pattern often points to expectations that the current shock will fade as weather normalizes and production ramps back up. 6
Coming Thursday (Jan. 29), traders will eye a batch of weather-model updates alongside the weekly U.S. storage report. Attention is also on whether production and LNG feedgas bounce back as temperatures moderate and the February contract nears its expiration later this week.
