On Monday, February Nymex natural gas prices surged by +1.525 (+28.91%), reaching a 3.25-year high amid severe weather conditions across the U.S. The cold wave led to the shutdown of approximately 12% of U.S. natural gas production, significantly affecting supply.
As of January 16, U.S. natural gas production was reported at 109.6 bcf/day, reflecting an 8.7% year-over-year increase. However, the EIA has revised its 2026 forecast down to 107.4 bcf/day, contributing to upward pressure on prices. Current natural gas inventories show a year-over-year increase of 6.0% but remain slightly above the five-year seasonal average.
In terms of demand, on January 21, lower-48 state gas demand was recorded at 126.0 bcf/day, down by 0.5% year-over-year. The number of active natural gas drilling rigs remains stable at 122, just below a recent high of 130.
