2026.01.2210:24:01UTC+00Deep Freeze Drives Historic Surge in US Natgas Prices

U.S. natural gas futures have exceeded $5.3 per MMBtu, nearing levels not seen since December 2022. This rise is attributed to forecasts of extreme cold that have heightened demand expectations and posed potential supply challenges. Weather predictions indicate temperatures will mostly remain below normal until February 5, with the coldest days expected between January 24 and 27. On January 24, average U.S. temperatures are anticipated to hover around 21.8 degrees Fahrenheit, remaining in the low 20s until January 26, which is likely to push heating demand nearly to record highs. A severe winter storm is forecasted to impact approximately two-thirds of the country, thereby increasing residential and commercial energy consumption and raising concerns over inventory depletions. Concurrently, production has hit roughly a three-month low, partially due to freeze-offs occurring especially in southern areas. U.S. natural gas futures are on track to achieve a weekly increase exceeding 70%, marking the most significant rise recorded since 1990.