New York, Jan 29, 2026, 13:56 EST — Regular session
- U.S. natural gas futures gained roughly 2% following a storage draw that exceeded expectations.
- EIA data revealed inventories remain higher than both last year and the five-year average.
- Gas-linked shares nudged up, following the trend in futures.
U.S. natural gas futures climbed Thursday following a government report showing a bigger-than-anticipated weekly storage withdrawal. The data underscored concerns over the pace of inventory declines after this week’s severe cold snap. The contract gained 8.3 cents, or 2.2%, settling at $3.815 per million British thermal units (mmBtu). 1
The move mattered because the market is still grappling with a brutal week: extreme cold boosted heating demand, froze wells in crucial producing basins, and pushed regional cash prices so high they triggered unusual moves in an export-heavy system. Traders are now scrambling to separate signal from noise.
A larger storage withdrawal could prop up prices, but it comes amid rapidly shifting supply dynamics. The key issue: will production rebound swiftly enough to offset late-winter demand, or will tightness persist into early February?
The Energy Information Administration reported that working gas in storage stood at 2,823 billion cubic feet (Bcf) as of Jan. 23, marking a 242 Bcf drop from the previous week. This level is 206 Bcf above the same period last year and 143 Bcf higher than the five-year average of 2,680 Bcf, the agency noted. Meanwhile, a separate market consensus tracked by Investing.com had expected a 237-Bcf withdrawal. 2
Supply tells the other side of the tale. National natural gas output remains roughly 12 billion cubic feet per day (bcfd) lower—about 10% off normal—as of Wednesday, thanks to freeze-offs hitting the Permian and Haynesville basins, according to Wood Mackenzie analysts. Justin Kringstad, director of the North Dakota Pipeline Authority, noted, “With relatively mild winter conditions and limited precipitation in the coming week, I am not expecting any additional curtailments in the near term.” 3
LNG flows added to this week’s market seesaw. Despite normally being a major LNG exporter, the U.S. imported gas to cash in on record prices during the storm, according to ship-tracking data and analysts. “It is extraordinary to see the world’s largest LNG exporter importing LNG,” said Jason Feer, head of business intelligence at shipping firm Poten and Partners. 4
Gas-linked stocks edged up, but gains were muted across the wider market. The United States Natural Gas Fund climbed around 2.3%. Producer EQT added about 0.4%, while Antero Resources and Range Resources rose roughly 1.9% and 2.2%, respectively. Shares of LNG exporter Cheniere and pipeline operator Kinder Morgan also ticked higher.
In Europe, gas storage slipped to 44% of capacity as of Jan. 26, Reuters reported, marking the lowest level for this period since 2022. That shortfall could sustain LNG demand well beyond the U.S. cold snap. 5
The downside scenario is clear-cut. Should forecasts grow milder and freeze-offs ease quicker than demand picks up, traders might shift attention back to inventories, which still sit above last year’s levels and the five-year average — a buffer likely to limit gains once weather risks fade.
The Feb. 5 EIA storage report drops at 10:30 a.m. ET. It comes alongside updated early-February temperature forecasts and daily production estimates, which will reveal if supply has genuinely bounced back.
