21-01-2026

Natural gas in focus The price of natural gas (NG) is on the rise due to strong cold, increased demand for heating, and concerns about shortages. Due to large inventory cuts and a technical bullish reversal, NG is still very volatile and a market to keep an eye on.

21-01-2026

Let’s dive into the reasons:

1. Severe Cold Weather—Main Cause

A lot of the United States have seen extremely low temperatures due to a severe Arctic freeze. Due to the sharp rise in heating demand, consumers and utilities had to take much more gas out of storage to meet demand. As a result, futures experienced one of the largest short-term movements in years, rising more than 50% in a few of days.

2. Strict Storage & High Withdrawals

Weekly gas withdrawals from deep stockpiles have increased due to the cold, raising concerns that supplies will run out sooner than anticipated. Strong upward movements are supported by traders pricing in inventory shortages.

3. Key Trigger: Higher-Than-Anticipated Storage Drawdowns

Natural gas consumption is well above forecasts, as seen by the recent EIA data, which indicates a significant 71 Bcf loss. Strong heating demand and faster reduction of excess inventories are indicated by ongoing inventory drawdowns, which have raised supply concerns and given prices significant bullish momentum.

4. Norway`s Gas Production Reaches a 12-Month High

For the third consecutive month, Norway, one of Europe`s biggest exporters of natural gas, recorded record gas output in December, exceeding market forecasts. As a result, pipeline gas flows into Europe have increased during a period of increased seasonal demand.

5. Increased Risk of Natural Gas Stockpiling in the United States

Any increase in U.S.-European trade or policy tensions could lead both regions to increase natural gas storage, given a spike in demand brought on by harsh weather and supply restrictions. Increased LNG exports from the United States to Europe may restrict domestic supply, and Europe`s active energy security purchases may further impact global availability, sustaining high prices and ongoing instability in the natural gas market.

21-01-2026

How the Natural Gas Market in Europe May Be Affected by Trump`s Policies

Although Donald Trump has little direct control over gas prices, his policies can have a big impact on LNG flows worldwide. Increasing U.S. LNG exports may lower Europe`s reliance on Russia, but it might also limit domestic supply in the United States and push up prices globally. Europe may become more focused on energy security and gas stocks as a result of trade tensions or changes in Russia-Ukraine policy, which would reduce current demand and volatility. Norway`s position as a major non-Russian supplier becomes crucial in this setting, because even little disruptions could result in significant price impact.

21-01-2026

In conclusion

Extreme weather, rapid inventory reductions, and growing supply-side and geopolitical threats are all contributing factors to the significant increase in natural gas prices. High volatility is likely to continue even though near-term momentum is still stable because of tight fundamentals and technical support. Natural gas is a market that takes careful observation and careful risk management since future market direction will depend on weather normalization, inventory trends, and changes in international policy