Natural Gas Futures Rise into Year End as Winter Demand Re Emerges

Storage and Inventory Withdrawals

The EIA reports that the US entered the winter heating season with storage 4% above the five-year average. However, record December withdrawals—expected to be 28% higher than average—have introduced fresh price volatility. Storage is now viewed as the market's primary shock absorber for any sudden January cold blasts.

LNG Export Strength

Structural demand remains strong due to US LNG export facilities running at near capacity. Analysts expect the Henry Hub spot price to average over $4.00/MMBtu throughout 2026 as production struggles to keep pace with the combined growth of domestic heating and international export commitments.