**Natural Gas Prices Surge Amidst Winter Storm**
On Friday, February Nymex natural gas closed up by 4.56%, settling at a significant increase as forecasts predicted an Arctic storm set to impact the U.S. this weekend. The storm is expected to drive heating demand and deplete natural gas inventories across 24 states, affecting over 150 million people. This week alone, natural gas prices have increased by more than 60%.
Texas Governor Greg Abbott declared disasters in over half of the state’s counties, anticipating disruptions in gas production due to freezing conditions in key production areas. The U.S. Energy Information Administration (EIA) has reduced its 2026 production forecast to 107.4 billion cubic feet per day (bcf/day), down from 109.11 bcf/day last month, further supporting the price increase. Currently, U.S. natural gas production stands at around 109.6 bcf/day, with lower-48 state gas demand at 126.0 bcf/day.
