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Winter Storms Drive Increases in Energy Prices

Winter storms and cold snaps across much of the Midwest and Southeast have driven a sharp increase in energy prices over the past few weeks. This surge has led to unfavorable short-term pricing in many ISOs, though longer-term strips have remained relatively stable. Additionally, the launch of two new LNG export facilities at the end of December has added further bullish pressure to the market.

Bearish

• Natural gas production remains stable.
• Storage is still holding strong and above the five-year average (min/max closer to five-year average during withdrawal season).

Bullish

• US sanctions on Russian LNG export facilities could increase European demand for US LNG.
• Winter storms increasing demand for natural gas heating.
• 8-14 day weather outlook is projecting cold weather to continue.
• New LNG export facilities coming online and increasing demand.

Storage Report: 1/17/25: Colder Weather Contributes to Substantial Withdrawal

Expected Withdrawal – 260 BCF 

Actual Withdrawal- 258 BCF 

Current Storage Level – 3,115 BCF – 2.5 % above the 5-year average 

Initial Projections suggested a large withdrawal this week. Actual withdrawal came in just 2 BCF lower. Winter storms hit the Midwest and Southeast last week and the majority of the country has experienced colder weather so far in 2025. This contributed to the substantial withdrawal, but storage still remains above the 5-year average.  

NOAA MAP: Below Average Temperatures Expected In Most Regions

Regional Dot Plots

Rolling Gas Curve

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