New York, January 7, 2026, 07:25 EST — Premarket
- UNG fell 3% on Tuesday, mirroring a steep drop in U.S. natural gas futures.
- Henry Hub February futures steadied overnight after the selloff, but spot-market weakness is keeping traders cautious.
- The next U.S. storage report is due Thursday, a key catalyst for near-term direction.
Shares of the United States Natural Gas Fund fell 3% on Tuesday, ending at $11.28. Benchmark February Henry Hub futures were up about 4% at around $3.48 per million British thermal units (mmBtu) early on Wednesday. 1
UNG is designed to track daily moves in the near-month NYMEX natural gas futures contract, giving investors a liquid way to trade U.S. gas prices through a listed fund. Winter price swings have sharpened early in the year as weather forecasts drive expectations for heating demand.
In a note circulated Tuesday, EBW Analytics Group analyst Eli Rubin said Henry Hub spot gas prices “collapsed” to $2.86 per mmBtu on Monday and estimated daily demand would average about 2.3 billion cubic feet per day (bcf/d) lower from Wednesday to Friday. Rubin wrote that the front-month futures contract tested $3.355 before it found support and rallied 17 cents into the close, but warned that losses in gas-weighted heating degree days — a measure of heating demand — were still weighing on the near-term outlook. He flagged downside risk for February futures toward $3.25, while expecting a “test lower and rebound” pattern over the next 7–10 days and any later rally to depend on colder forecasts. 2
February Nymex gas futures settled down nearly 5% on Tuesday as forecasts for above-normal temperatures through Jan. 10 reduced heating demand, a Barchart analysis said, citing Xweather. BloombergNEF data cited by Barchart showed lower-48 dry gas output running at 112.2 bcf/d on Tuesday, while demand was 89.5 bcf/d and LNG feedgas flows were about 18.5 bcf/d. 3
Natural gas-linked products continued to reflect the whipsaw in prices: ProShares’ 2x natural gas ETF BOIL fell 2.8% on Tuesday, while the inverse KOLD rose 2.7%. Among gas-heavy producers, EQT was up about 0.1% in early premarket trading, while Antero Resources was down about 1.8%.
The overnight bounce in futures may not stick if weather models stay mild and spot prices remain weak, limiting storage withdrawals and keeping traders focused on surplus supply. A colder turn later in January would quickly shift that balance, lifting heating demand and tightening near-term inventories.
