In a striking display of market dynamics, the U.S. natural gas industry encountered unprecedented withdrawals as working natural gas stocks plummeted by 360 billion cubic feet (Bcf) during the last week of January 2026. This significant decline, attributed to Winter Storm Fern, marks the largest weekly net withdrawal recorded in the history of the Weekly Natural Gas Storage Report released by the U.S. Energy Information Administration.

The storm, which blanketed the Lower 48 states from New Mexico to New England with extreme cold, heavy snow, and ice, severely impacted natural gas consumption and production. Interestingly, the withdrawal surpassed the five-year average for the same week by an astonishing 89%, or 170 Bcf. Now, working gas stocks sit at just 1.1% below the five-year average for this time of year.

Many factors contributed to this drastic change in the landscape of natural gas supplies. As homes and businesses cranked up heating demands amidst the frigid temperatures, natural gas consumption surged unusually high. Reports from Bloomberg L.P. indicated that natural gas usage in residential and commercial sectors surged 29% higher than the five-year average for the days spanning January 23-26, averaging 13.9 Bcf/d.

Conversely, production faced considerable challenges. Extreme cold weather caused equipment freeze-offs and necessitated shut-ins, particularly in regions along the U.S. Gulf Coast, where temperatures dipped below freezing. This reduction in natural gas supply created an immediate imbalance, leading to rising prices at multiple locations across the country.

The U.S. benchmark natural gas spot price at the Henry Hub rose dramatically, reaching $9.03 per million British thermal units (MMBtu) on January 28. This figure represented an increase of $4.05/MMBtu from the previous week and a stark jump of $5.60/MMBtu compared to the same period the previous year. For small business owners, the rising costs can pose significant implications—especially for those in the manufacturing, service, and hospitality sectors, where heating and operational costs are pivotal.

With such fluctuations, business owners might find temporary natural gas storage withdrawals a useful tool for managing costs. These withdrawals can help buffer against rising prices by supplementing other sources of supply during periods of heightened demand. However, the challenges are undeniable, as businesses must be prepared for both the uncertainty in energy prices and the potential impacts on their bottom line.

Jose Villar, the principal contributor behind this analysis, emphasizes the need for small business owners to stay informed about market trends in order to navigate the complexities of rising natural gas prices effectively. “Understanding the factors driving market fluctuations can empower business owners to make strategic decisions,” Villar noted.

While the immediate effects of Winter Storm Fern have sparked heightened demand and supply challenges, the long-term implications remain to be seen. Small business owners are advised to consider energy efficiency measures, such as investing in upgraded HVAC systems, improved insulation, or seeking alternative energy sources to mitigate the impact of volatile natural gas prices.

Ultimately, as the natural gas market continues to adapt to unpredictable weather patterns and consumer demands, small business owners must remain proactive in managing their energy strategies. The winter storm’s impact serves as a reminder of the complexities within energy markets and the importance of preparing for unforeseen events.

For an in-depth look at the original analysis, visit the Energy Information Administration’s report here.

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