NEW YORK, Feb 2, 2026, 13:50 (EST) — Regular session
- United States Natural Gas Fund plunged roughly 26% amid a sharp drop in U.S. gas futures.
- EQT Corp dips, with pipeline players Cheniere Energy, Kinder Morgan, and Williams Cos also pulling back.
- Traders are eyeing storage reports and mid-February weather forecasts for clues on where the market heads next.
Shares of the United States Natural Gas Fund dropped roughly 26% to $12.51 on Monday, mirroring a sharp plunge in natural gas futures. EQT slid about 5%, with Cheniere Energy and pipeline giants Kinder Morgan and Williams also seeing losses.
The shift highlighted just how fast the weather trade can reverse. Those who bet on the cold snap in late January now face a sudden change in forecasts, and the market has been unforgiving.
With gas-linked stocks and funds, the pain comes from the market outpacing the headlines. Just a few warmer model runs can erase days of gains, and then the next storage report flips the script once more.
March Henry Hub futures on NYMEX dropped 18.7%, settling at $3.54 per million British thermal units, the key gas heat measure. LSEG reported Lower 48 production hitting 106.6 billion cubic feet daily, with demand—exports included—set to ease next week. It also noted record 30-day volatility alongside increased LNG feedgas volumes. (BOE Report)
UNG usually tracks the near-month futures contract closely, so sharp daily moves in the commodity hit the fund fast. That can work well during a trend. But on days like Monday, it can backfire.
Devon Energy and Coterra Energy are set to merge in a $58 billion all-stock deal focused on the shale patch, with plans to capture $1 billion in annual pre-tax savings by 2027 and close by Q2. Coterra’s shares slipped 2.4% in regular trading, according to Reuters. Siebert Williams Shank & Co analyst Gabriele Sorbara described the merger as “incrementally positive.” Devon CEO Clay Gaspar emphasized that scale provides operational and financial benefits that smaller players can’t match. (Reuters)
The LNG system is still feeling the impact of last week’s freeze. U.S. LNG exports dipped to 11.3 million metric tonnes in January, down from December’s record 11.5 million. This drop followed outages and reduced intake toward the month’s end, including at Freeport LNG in Texas. Kinder Morgan’s Elba Island facility in Georgia, meanwhile, received cargo from Trinidad and Tobago, Reuters reported, citing LSEG data. The numbers showed Europe accounted for 9.46 million tonnes, or 83% of total U.S. exports. (Reuters)
Looking further ahead, industry chatter focuses on demand rather than scarcity. At a Doha event, Qatar Energy CEO Saad al-Kaabi warned the market might face “oversupply” through 2030, though rising power needs from AI and data centres could push it into shortage territory by then. Shell
Shell CEO Wael Sawan warned the world is adding energy demand equivalent to Switzerland’s monthly consumption all the way to 2050. (Reuters)
Still, in the short term, it’s all about weather and supply. Temperatures can plunge unexpectedly, wells can freeze and disrupt production, and LNG feedgas may fall off during outages — any of which can send prices surging again just as fast.
Thursday brings the weekly storage report from the U.S. Energy Information Administration at 10:30 a.m. Eastern. The latest mid-February temperature forecasts are also set to be released. (Eia)
