U.S. Natural Gas Surges 60% in One Week Amid Cold Snap

The U.S. natural gas market experienced a sharp increase during the week ending January 21, 2026. The Henry Hub spot price rose $1.86 per million British thermal units (MMBtu), climbing from $3.12/MMBtu to $4.98/MMBtu, according to Energy Information Administration (EIA) data. Most U.S. natural gas hubs reported prices above $4.00/MMBtu in Wednesday trading. Futures Contracts Post Strong Gains The February 2026 NYMEX contract gained $1.76, reaching $4.875/MMBtu compared to $3.120/MMBtu the previous week. The 12-month strip, covering February 2026 through January 2027, rose 65 cents to $3.970/MMBtu. The EIA attributes this futures price increase to anticipated changes in 2026 storage balances, with no material impact on longer-dated contracts. In regional markets, the Houston Ship Channel recorded the largest increase at $2.08/MMBtu, bringing the price to $4.55/MMBtu. Florida Gas Zone 3 rose $1.42 to reach $5.03/MMBtu. These increases coincided with falling temperatures in the southern U.S., where natural gas consumption jumped 26%, or 3.5 billion cubic feet per day (Bcf/d), according to LSEG Data. Tensions in International Markets International prices also rose. Front-month futures for liquefied natural gas (LNG) cargoes in East Asia increased $1.14/MMBtu to a weekly average of $10.73/MMBtu, according to Bloomberg Finance. At the Title Transfer Facility (TTF) in the Netherlands, prices climbed $2.18/MMBtu, bringing the average to $12.40/MMBtu. These levels remain below the same period last year, when prices stood at $14.01/MMBtu in East Asia and $14.57/MMBtu at TTF. European storage remains a source of tension. According to Gas Storage Europe, European Union reserves reached 48% capacity on January 20, compared to a five-year average of 63%. In the United States, 37 LNG tankers with a combined capacity of 139 Bcf departed U.S. ports between January 15 and 21. U.S. Storage Above Historical Averages Net withdrawals from storage totaled 120 Bcf for the week ending January 16. This level remains below the five-year average of 191 Bcf and the 228 Bcf withdrawn during the same period last year. Working gas stocks reached 3,065 Bcf, which is 177 Bcf (6%) above the five-year average and 141 Bcf (5%) above last year's level. The withdrawal rate since the start of the withdrawal season remains 2% below the five-year average. If this pace aligned with the historical average of 14.5 Bcf/d through the end of March, stocks would reach 1,995 Bcf by March 31, or 177 Bcf above the five-year average of 1,818 Bcf. Drilling Activity Slightly Down The natural gas rig count decreased by 2 units to 122 rigs during the week ending January 13, according to Baker Hughes. The Haynesville basin added one rig while Eagle Ford lost one. The total rig count, including 11 miscellaneous rigs, stands at 543 units, 37 fewer than the same period last year. The EIA announced this edition would be the final publication of the Natural Gas Weekly Update. The agency will launch a new format on January 29, the Weekly Natural Gas Storage Report Supplement, published every Thursday afternoon.

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