New York, Jan 26, 2026, 13:54 (EST) — Regular session
- UNG surged nearly 8% amid a sharp spike in U.S. natural gas prices triggered by an Arctic blast.
- Front-month Henry Hub futures surged to an intraday peak around $7.38 per mmBtu, marking their highest level in 2022.
- Traders focus on freeze-offs, LNG feedgas flows, and the EIA storage report due Thursday.
Shares tied to U.S. natural gas jumped Monday after Henry Hub prices hit multi-year highs amid a deep freeze. The United States Natural Gas Fund (UNG) saw a sharp uptick in afternoon trading.
The rally is significant as winter demand surges while cold snaps disrupt supply. “Freeze-offs” — when water and other liquids freeze in the gas stream and choke flows — can halt production swiftly, tightening the market within hours.
It’s also entering a market that’s become much more intertwined with global liquefied natural gas (LNG) trade than just a few years back. A disruption in U.S. supply can tighten feedgas flows to export terminals and shift price risks abroad.
UNG climbed roughly 8% to hit $15.11. EQT, the Appalachian-focused producer, gained about 1.7% to $56.45. Antero Resources edged up nearly 2.7% to $35.21, and Coterra Energy crept higher by around 0.4% at $27.53. Pipeline operators and LNG exporters showed a mixed picture, with Cheniere Energy slipping about 0.8% to $205.75.
Front-month U.S. natural gas futures climbed to $7.384 per million British thermal units (mmBtu) near midday in New York, marking a roughly 40% jump from Friday’s settlement, according to Bloomberg data. The mmBtu is the go-to unit for pricing natural gas stateside (Bloomberg)
The U.S. cold snap has already tightened supply and demand. Domestic gas consumption is expected to hit 156 billion cubic feet per day (bcfd) this week, well above the five-year January average of 137 bcfd. Meanwhile, average U.S. production has dipped to 108.4 bcfd this month, down from a December record of 109.7 bcfd, according to LSEG data and forecasts. Baringa partner Mashal Jaffery noted the global gas market is now “far more interconnected.” (Reuters)
The curve is speaking volumes. February natural gas contracts hovered around $6.96 per mmBtu on Barchart, with March sitting close to $3.90. That wide gap points to bets the supply crunch will ease as temperatures and output stabilize. (Barchart)
Equity investors are weighing how long this price surge will stick around and if it will turn into a wider boost for earnings. Higher gas prices can improve cash flow for producers, but that depends on steady volumes and no knock-on effects hitting infrastructure, processing, or takeaway capacity.
The risk is obvious: if temperatures rise sooner than forecast, the rally could reverse almost as fast, particularly if freeze-offs drop and production picks up. The steep premium in the prompt month means gas-linked funds are prone to sharp moves on shifts in weather models and contract roll effects.
Traders are eyeing Thursday’s U.S. storage report. The Energy Information Administration will publish its Weekly Natural Gas Storage Report at 10:30 a.m. Eastern, with the following update set for Jan. 29. Market focus will be on the withdrawal size and any early signals of supply bouncing back from freeze-offs. (U.S. Energy Information Administration)
