New York, Jan 22, 2026, 10:55 EST — Regular session
- U.S. February Henry Hub natural gas futures gained 63 cents, jumping roughly 13%, closing at $5.505 per mmBtu
- The EIA reported a weekly storage draw of 120 billion cubic feet, though inventories still sit above the five-year average
- UNG climbed roughly 3.8%, even as key gas-related stocks showed a mixed performance in morning trading
U.S. natural gas futures surged once more on Thursday, with the February Henry Hub contract climbing 63 cents—roughly 13%—to settle at $5.505 per million British thermal units (mmBtu). This February contract is set to expire on Jan. 28, giving traders a firm deadline amid a market already rattled by shifting weather forecasts.
The latest update came after a U.S. government report showed working gas in storage dropped by 120 billion cubic feet (Bcf) in the week ending Jan. 16, down to 3,065 Bcf. Despite the drawdown exceeding the -90 Bcf forecast tracked by Investing.com, stocks remain 177 Bcf above the five-year average, the agency said. The next EIA report is scheduled for Jan. 29.
The urgency is clear: cold weather is moving in quickly, catching the U.S. market off guard. The National Weather Service predicts sub-zero temperatures will spread from the Northern Plains to the Northeast by Sunday, reaching the Gulf Coast early next week. TACenergy, a fuel distributor, said the Arctic blast “caught the market off guard” after forecasts had suggested warmer weather later in January. U.S. natural gas futures surged to a six-week high on Wednesday, following a record 57% jump over the previous two sessions, Reuters reported. Reuters
Volatility has pushed trading volumes to new heights. On Jan. 20, CME Group reported a single-day record of 2,576,346 contracts traded in its natural gas complex. Peter Keavey, the company’s global head of energy and environmental products, noted that clients are flooding the market “in record numbers” to hedge against price swings. PR Newswire
Gas-linked stocks showed a mixed bag following the sharp rally in futures. The U.S. Natural Gas Fund ETF gained 52 cents, roughly 3.8%, closing at $14.16. EQT, a producer, dipped 30 cents, or about 0.5%, to $54.53. Range Resources edged up 33 cents, around 0.8%, to $43.84. Meanwhile, LNG exporter Venture Global jumped 50 cents, approximately 5.5%, to $9.55.
Midstream players kept pointing investors toward longer-term demand trends, beyond the short-term weather-driven moves this week. Kinder Morgan remains bullish on U.S. natural gas demand, highlighting increased electricity use from data centers. The company transported 48.4 trillion British thermal units of natural gas daily in the quarter, up from 44.5 trillion a year earlier. CFO David Michels attributed the growth to new natural gas expansion projects, the Outrigger Energy acquisition, and “strong demand” from associated services. Reuters
LNG stocks remained in the spotlight following a legal development. Venture Global secured an arbitration victory in its dispute with Spain’s Repsol over a long-term supply agreement linked to the Calcasieu Pass project. UBS analyst Manav Gupta told Reuters that more arbitration decisions in related cases are anticipated in 2026 and 2027.
But the rally carries a clear risk: storage remains above the five-year average, and prices are heavily tied to short-term temperature forecasts. Should the cold ease or if production and infrastructure prove more resilient than expected, those gains could slip away fast — especially with the front-month contract nearing expiry.
Traders eye updated weather models through the weekend, focusing on potential freeze-offs in Texas and the Midcontinent. LNG export demand is under scrutiny too, as prices fluctuate. On the calendar: the February contract expires Jan. 28, followed by the EIA storage report on Jan. 29.
