The Energy Buyer's Guide | 02.09.2026

Risk premiums unwind as the market anticipates a mild finish to winter.

- Natural gas futures reversed sharply lower last week as the market unwound a significant portion of the late-winter risk premium following the peak of the recent cold event.

- A record-breaking 360-Bcf storage withdrawal captured the bulk of the weather impact, but the draw came in toward the lower end of expectations.

- With weather forecasts moderating, domestic demand falling, and production rebounding, end-of-season storage projections shifted materially higher compared to last week’s worst-case outlook.

- Spot natural gas and power prices declined sharply from extreme levels as system stress eased, though pricing across the East and Midwest remained elevated by historical standards.