NEW YORK, Jan 16, 2026, 06:33 ET — Premarket
- February Henry Hub natural gas futures climbed roughly 1.4%, hitting near $3.17 per mmBtu in early trading.
- U.S. storage inventories still sit above normal levels, despite a smaller-than-expected withdrawal of 71 billion cubic feet in the latest report.
- Traders are eyeing the latest U.S. temperature forecasts alongside the federal storage report due next Thursday.
U.S. natural gas futures edged higher on Friday morning, recovering some losses following a sharp drop that left prices near multi-year lows. The February Henry Hub contract added 4.3 cents, or 1.4%, climbing to $3.171 per million British thermal units (mmBtu) by 6:33 a.m. ET, according to CME data. (CME Group)
This bounce counts because traders had been betting bearish through mid-January, expecting mild weather and ample stockpiles to limit heating demand. With prices hovering just above $3, even slight tweaks in weather forecasts can trigger rapid shifts in positions.
This market faces a packed weekly data slate. Storage figures, LNG export activity, and the upcoming late-January temperature forecasts are carrying extra weight, especially after the contract’s steep drop from earlier winter peaks.
As of Jan. 9, working gas in underground storage was 3,185 billion cubic feet (Bcf), following a net withdrawal of 71 Bcf last week, the U.S. Energy Information Administration reported. Stocks exceeded year-ago levels by 33 Bcf and were 106 Bcf higher than the five-year average, according to the agency’s weekly update. (Eia)
Prices continued to slide. The EIA’s weekly report showed the February 2026 NYMEX contract dropped 41 cents from the previous week, settling at $3.120 on Jan. 14—its lowest since mid-2020. The 12-month strip averaged $3.324. The update also noted 33 LNG vessels left U.S. ports from Jan. 8 to Jan. 15, carrying a total of 127 Bcf, indicating export demand is still drawing heavily on supply. (U.S. Energy Information Administration)
Weather continues to be the key variable. On Jan. 15, NOAA’s Climate Prediction Center released its outlook, highlighting a tilt toward below-average temperatures near the Canadian border from Jan. 21–25. The northern Great Lakes and Minnesota show the highest likelihood. At the same time, warmer-than-normal conditions are expected in sections of the West, southern Plains, and Gulf Coast. (Climate Prediction Center)
Behind the scenes, producers and buyers are gearing up for Gulf Coast gas demand linked to LNG exports. Mitsubishi Corp announced it will acquire Aethon Energy Management’s U.S. shale production and infrastructure for $7.53 billion. This move hands Mitsubishi a major gas operation near key U.S. export hubs. CEO Katsuya Nakanishi described the assets as “high productivity and competitiveness.” (Reuters)
The rebound remains fragile. Should late-January forecasts shift warmer once more, or if weekly withdrawals remain light and the storage surplus grows, traders anticipate sellers pushing the market back down to recent lows.
Thursday brings the next storage report, set for 10:30 a.m. Eastern by the EIA, unless a holiday bumps the schedule. The upcoming release is due Jan. 22. (Eia)
