The Energy Buyer's Guide | 01.26.2026

Natural gas futures stage historic rally ahead of extended cold snap.

- Natural gas futures posted a historic rally last week, with the February contract surging more than 70% to finish above $5.00 per MMBtu as late-winter risk was aggressively repriced.

- A lighter-than-normal 120-Bcf storage draw expanded existing surpluses, but market focus has shifted decisively to upcoming reports, as end-of-season inventories are now projected to fall below 1.8 Tcf.

- Weather-driven demand is accelerating sharply as intense cold settles across the eastern half of the U.S., with significantly higher consumption expected during the upcoming week.

- Power and natural gas basis forwards reflected growing system stress, particularly in the Northeast, reinforcing the futures market’s reassessment of winter deliverability and price risk.