2026.01.2917:04:10UTC+00US Natgas Prices Edge Up

U.S. natural gas futures increased approximately 1% on Thursday, driven by a larger-than-anticipated storage draw and a more robust demand outlook, which balanced out the ongoing recovery in production. According to the Energy Information Administration, storage levels saw a withdrawal of 242 billion cubic feet for the week ending January 23. This figure surpassed predictions and significantly exceeded the five-year average, primarily due to heightened heating demand following an Arctic cold snap. Weather forecasts now suggest that colder-than-normal temperatures will persist through mid-February, sustaining strong consumption expectations even if these temperatures are not as severe as those experienced in late January. Production levels remain below recent peaks, with average output for January lower than December's records. However, daily supply is gradually recuperating as previously frozen wells resume operation. Additional support came from increased gas flows to LNG export facilities following earlier storm-related disruptions in the week. Some companies have even imported gas into the U.S. to capitalize on high prices, emphasizing the tight market conditions that persist despite the gradual rebound in supply.