NYMEX Natural Gas Market Update — January 26, 2026

Tony Zelinski
3 days ago
2 min read

The NYMEX Natural Gas market saw significant volatility leading into January 26, 2026, driven primarily by an intense Arctic freeze impacting the U.S. Northeast. The February contract closed at $5.275 on January 23, marking a strong weekly gain of 70%, driven by heightened expectations for heating demand and supply concerns.

During the trading session on January 23, prices fluctuated between an intraday low of $4.980 and a high of $5.434, reflecting market uncertainty amid the cold weather outlook. The Energy Information Administration (EIA) reported a substantial 120 BCF withdrawal from natural gas storage for the week ending January 16, surpassing market estimates of 90 BCF. Total working gas in storage stood at 3,065 BCF, which is 4.8% higher than last year and 6.1% above the five-year average.

Despite the recent price surge, natural gas prices remain below early December levels, with the spot price at $5.04 per MMBtu as of the week ending January 23.

The market continues to balance the effects of the Arctic cold snap with ongoing production levels and weather forecasts.

The EIA's weekly storage report for the week ending January 16 showed a net withdrawal of 120 BCF, well above the five-year average withdrawal of 191 BCF for the same period last year.
Total working gas in storage remains comfortably above the five-year average, currently at 3,065 BCF.
Production has slightly declined from recent highs, with output around 106-107 BCF/d due to weather-related freeze-offs in major shale basins.
LNG feedgas demand remains strong, averaging near record levels of approximately 18.5 BCF/d in January, supporting prices despite mild weather in some regions.
Natural gas futures have shown strong volatility, with the February contract gaining over 60% in recent weeks amid weather-driven demand surges.
The market is responding to a combination of Arctic cold, storage withdrawals, production variability, and robust LNG export demand.