Natural Gas Market Keeps Up Momentum with 75% Gains in Three Days
The price of natural gas is rising fast after a cold front begins to spread across the United States.
Quick overview
- A winter-driven gas market squeeze is causing natural gas prices to rise significantly, reaching $5.53/MMBtu.
- The current cold weather is expected to increase demand for LNG as people stay indoors and heating needs surge.
- Market sentiment has shifted from bearish to bullish, with expectations of continued high demand and volatility in gas prices.
- Investors are optimistic due to the gas market rally, alongside rising gold and stock prices, despite challenges in the cryptocurrency market.
A winter-driven gas market squeeze is pushing prices higher as demand skyrockets for LNG, and U.S. gas futures have moved more than 75% since Monday.
The cold weather is moving quickly across the United States, with warnings of ice storms and heavy snow causing Americans to stay indoors and turn up their heaters in defense. Natural gas prices rose to $5.53/MMBtu and are now close to very high levels last seen back in December of 2022.
Traders are bearish now as the market experiences a tremendous demand spike that could last for a while. The current cold front is expected to fade out by Monday, but similar fronts are spreading across Europe and Asia as well. Gas companies will have to dig deep into their reserves, and the market may end up with normal levels soon.
Demand Is Catching up with Supply
The largest winter storm of the season so far is making its way through the United States, forecasted to hit the South and move up toward the lowest parts of New England before it is over. The demand for LNG is expected to rise dramatically as pipes freeze, snow drifts keep people indoors, and deliveries are disrupted by inclement weather.
The gas market sentiment is changing fast- where it was bearish just last week, it is now bullish and only going to move higher. Even when the winter storm is done, more extremely cold weather is expected before January is finished. Gas companies will be using up reserves that have been piling incredibly high for months. Those reserves have been a constant problem with the market that have kept prices low as demand remained minimal throughout the warm summer months of 2025.
The market is rallying now, and it is more than just the gas market looking bullish. Gold and stocks are both up, although cryptocurrency is going through a rough patch. Investors are breathing a sigh of relief as President Trump pulls back on plans to levy tariffs against European trade partners, and the timing is right for a natural gas market rally.
Cold weather is expected all the way through January 31st, and weather models are calling for colder weather than they were last week. The American South and Central United States are both in for extremely chilly weather over the coming weeks, and analysts are saying the market’s movement is volatility on a level not seen in years.
The last time the market moved in this manner was back in 2022, and then before that, it would have been 2018. While gas prices rising like this are not great for the average citizen, investors and gas companies are set to make incredible profits in the coming weeks.
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