EIA Natural Gas Storage Report – Week Ending January 16, 2026

Tony Zelinski
8 hours ago
2 min read

Bullish 120 Bcf Withdrawal Sends Prices Higher as Winter Risk Intensifies

The EIA reported a 120 Bcf withdrawal from U.S. natural gas storage for the week ending January 16, 2026, a notably bullish print that exceeded the market consensus of 90 Bcf. The stronger‑than‑expected draw reflects the onset of widespread frigid temperatures and rising heating demand across major population centers.

Total working gas now stands at 3,065 Bcf, which is:

• 4.8% above the same week last year

• 6.1% above the five‑year average

Inventories remain comfortably supplied, but the margin is narrowing as winter weather intensifies.

📈 Market Reaction: Prices Surge on Weather + Bullish Draw

Natural gas futures rallied sharply ahead of—and following—the report:

• February contract opened at $5.286, up $0.411 from Wednesday’s close

• Prices climbed to $5.650 by 10:15 AM during the overnight/early‑morning rally

• The contract traded at $5.500 just before the EIA release

• After digesting the bullish withdrawal, prices pushed higher to $5.625 by 11:10 AM

The combination of a stronger‑than‑expected draw and impending Arctic air continues to add upward pressure to the front of the curve.

🌡️ Weather & Demand Dynamics

The week’s withdrawal reflects:

• Rising residential/commercial heating demand as temperatures dropped across the Midwest, Northeast, and Mid‑Atlantic

• Early signs of colder‑than‑normal patterns expected to deepen in the coming days

• A market increasingly sensitive to winter risk premium, especially with LNG feedgas demand holding firm and production showing signs of weather‑related variability

While storage remains above normal, the market is clearly shifting its focus toward short‑term cold exposure and the potential for larger draws ahead.

🧭 Strategic Takeaways

• 120 Bcf withdrawal confirms tightening fundamentals as winter weather intensifies

• Storage remains above average, but the surplus is shrinking as heating demand accelerates

• Price action is increasingly weather‑driven, with traders positioning for deeper cold in late January

• Volatility is likely to remain elevated, especially if freeze-offs disrupt production or if LNG feedgas demand increases further

📌 Bottom Line

This week’s EIA report reinforces a more bullish tone in the natural gas market. With a stronger‑than‑expected withdrawal and a major cold outbreak on the horizon, traders are recalibrating expectations for the second half of January. Storage remains healthy, but the market is clearly pricing in heightened winter risk.

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