NEW YORK, Jan 2, 2026, 17:06 ET — After-hours
- U.S. Natural Gas Fund (UNG) ended regular trading down 1.6% as U.S. natural gas futures fell.
- Traders pointed to warmer U.S. forecasts and a smaller-than-expected storage draw, with near-record output still in the background.
- Focus now turns to updated mid-January weather models and next week’s U.S. storage data.
U.S. natural gas prices slid on Friday, and the main natural-gas tracking fund on U.S. exchanges moved with them.
The United States Natural Gas Fund (UNG), an exchange-traded fund that tracks near-dated U.S. natural gas futures, closed down 1.6% at $12.06 and was last at $12.04 in after-hours trading.
Front-month natural gas futures for February delivery were down 9.6 cents, or 2.6%, at $3.59 per million British thermal units (mmBtu), a standard energy unit used in U.S. gas trading.
The timing matters because the market is in the peak winter heating window, when small shifts in temperature forecasts can quickly swing demand expectations and prices.
This week’s trade has also underscored a tug-of-war between weather-driven consumption and a supply picture that has stayed firm, with U.S. output and liquefied natural gas (LNG) export flows both elevated, LSEG data showed.
Natural gas prices had been above $4 earlier in the week as traders leaned into colder-weather demand and strong LNG feedgas flows, before giving ground as forecasts softened.
Meteorologists were forecasting warmer-than-normal temperatures across the country through Jan. 16, with heating degree days — a measure of how much energy is needed to heat buildings — falling from 413 on Wednesday to 369 on Friday, according to the Reuters report.
“There were concerns that the La Nina was breaking down a little bit, leading to warmer temperatures,” said Phil Flynn, senior analyst for Price Futures Group. Baird Maritime / Work Boat World
On the fundamentals, the U.S. Energy Information Administration said firms withdrew 38 billion cubic feet of gas from storage in the week ended Dec. 26, below the 50-bcf withdrawal analysts expected in a Reuters poll.
Supply remained a key overhang. LSEG said average lower-48 output rose to 110 billion cubic feet per day in December, beating November’s record, while flows to eight large U.S. LNG export facilities averaged 18.5 bcfd in December, also a record.
Some traders are watching whether the February contract tests levels seen before Christmas. Ritterbusch Associates said that if warmer forecasts persist, February futures could slide back toward about $3.47.
LNG remains a central pillar for the 2026 demand story. The United States exported 111 million metric tons of LNG in 2025 — a record and about a 24% increase from the prior year — with shipments accounting for roughly a quarter of global exports, preliminary LSEG data showed.
In equities tied to LNG, Cheniere Energy was trading around $199.80 after hours, above its $197.80 regular-session close, according to Public.com.
For the next stretch, traders are watching the next rounds of U.S. weather-model updates, whether LNG feedgas stays near recent highs, and whether upcoming storage withdrawals start to track closer to seasonal norms.
