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Natural Gas Prices Surge as cold Snap Grips US, Oil Prices Fall
Published: 2026/01/22 20:40:55
Natural Gas Prices Spike
U.S. natural gas prices have risen sharply on January 22, 2026, reaching levels not seen since 2022, driven by an impending arctic cold snap expected to impact much of the United States.The price of natural gas reached $5.6500 per million British thermal units (BTU) during intraday trading. This surge is attributed to anticipated high demand for heating and potential disruptions to natural gas production.
According to Eli Rubin of EBW Analytics Group, the sudden arrival of the cold weather has created a critically important upward pressure on natural gas prices. EBW Analytics Group provides independent energy analysis.
The National Weather Service (NWS) has issued alerts indicating that frigid temperatures will extend across the eastern two-thirds of the country. The National Weather Service forecasts are predicting widespread below-freezing temperatures and potential for record lows.
The combination of increased demand and potential production issues is fueling the price increase. Reduced production can occur as extremely cold weather can impact wellheads and pipelines.
European Gas Markets Also React
Concerns are also growing in Europe regarding potential cold weather. Ole R. Hvalbye,an analyst at Seb,notes that European gas storage levels are already below seasonal norms,at 13% below the average for 2016-2025. SEB Group is a leading Nordic financial services group.
The benchmark European gas price, the TTF (Title Transfer Facility) in the Netherlands, reached a high of €41.915 per megawatt-hour (mwh), the highest level since June 2026. This reflects increased risk of winter supply shortages.
Oil Prices Decline Amid Geopolitical Shifts
In contrast to the rise in natural gas prices, crude oil prices have fallen as geopolitical tensions ease. Jose Torres of Interactive Brokers points to a calming of geopolitical risks as a key factor. Interactive Brokers is a global brokerage firm.
Recent developments include a framework for a potential agreement regarding Greenland announced by the U.S. President at the World Economic Forum in Davos,and the lifting of threatened tariffs and military actions. Additionally, reports indicate Iran is open to discussions with the United States, with Washington expressing willingness to engage.
Ukrainian President Volodymyr Zelenskyy has reportedly reached an agreement with former U.S. President Donald Trump regarding security guarantees for Ukraine, contingent upon a potential cessation of the conflict with Russia.
Brent crude, the international benchmark, decreased by 1.81% to $6