Energy Markets 22 January 2026 - 28 January 2026

U.S. February natural gas futures fell nearly 5% to $6.465/mmBtu in early Tuesday trading, retreating from a 52-week high. Production dropped to a two-year low over the weekend due to freeze-offs but began recovering. The February contract expires Jan. 28, with traders watching daily output, LNG flows, and cash prices at major hubs. The March contract trades well below February, reflecting expectations of easing supply tightness.

NYMEX February natural gas futures surged nearly 17% to about $6.20/mmBtu Monday after an Arctic blast cut Lower 48 output to a two-year low of 92.6 bcfd. The February contract gained 89% in five sessions as freeze-offs disrupted supply. U.S. gas consumption is projected to reach 156 bcfd this week, far above average. The price spike triggered outages and pipeline constraints in the East.

U.S. Henry Hub natural gas futures closed at $5.275 per mmBtu Friday, up 4.6%, as traders braced for Winter Storm Fern and possible supply disruptions. Spot power prices on PJM’s grid topped $3,000 per megawatt-hour. Nearly 3 Bcf per day of gas output was frozen by Friday, with more disruptions expected Jan. 26. EIA reported storage at 3,065 Bcf, about 6% above the five-year average.

U.S. natural gas futures closed Friday at $5.275/mmBtu, the largest weekly gain since 1990, after volatile trading driven by Winter Storm Fern and freeze-off concerns. The storm is expected to cut output by up to 86 bcf over two weeks, with the PJM grid operator warning of record electricity demand. Storage stood at 3,065 bcf as of Jan. 16, 6% above the five-year average. Traders await the Jan. 29 storage report for further direction.