Overview
- Spot prices at Henry Hub neared $8.15 per MMBtu on Jan. 22, EIA reported, while CME Group logged a single‑day record of more than 2.5 million gas contracts traded on Jan. 20.
- Front‑month futures jumped roughly 60%–75% this week to the highest levels since 2022 as traders rushed to cover short positions following colder forecasts.
- NOAA forecasts frigid temperatures for the eastern two‑thirds of the U.S., and analysts expect significant storage withdrawals during and after the cold snap.
- Severe cold raises the risk of production freeze‑offs in basins including Haynesville and parts of the Marcellus/Utica, with some estimates pointing to peak output losses approaching 10 bcf per day.
- Analysts say higher wholesale costs are likely to filter into utility bills over coming weeks to months, though current storage buffers and hedging are expected to temper the immediate impact on households.