How the Winter Storm Is Affecting Natural Gas Supply, Demand

Watch on YouTube ↗  |  January 27, 2026 at 07:43  |  2:14  |  Bloomberg Markets
Speakers
Dan Murtaugh — Bloomberg Reporter

Summary

Dan Murtaugh explains how an Arctic blast has disrupted US natural gas markets by freezing wells and pipelines, cutting supply while raising heating and power demand. Front-month US natural gas prices nearly doubled from Jan. 16 to Jan. 26, creating market dislocations. He also explains how LNG trading links US, European, and Asian gas markets, and that US cold snaps could eventually divert LNG and tighten European or Asian supply even though this event is likely short-lived.

  • Arctic blast freezes US gas infrastructure and cuts supply.
  • Heating and power-plant demand surges during the cold snap.
  • Front-month US natural gas prices nearly doubled Jan. 16-26.
  • LNG trading has linked US, Europe, and Asia gas markets.
  • Europe relies heavily on US LNG after Russia's invasion of Ukraine.
  • Higher US prices could divert LNG to domestic buyers and away from Europe.
  • Next-month futures are lower, suggesting the event may pass quickly.
  • US cold snaps remain a supply risk for Europe and Asia over time.
Ideas
Dan Murtaugh Bloomberg Reporter 0:04
Arctic blast drives US nat gas dislocation.
An Arctic blast is freezing wells, pipelines, and processing plants in West Texas, Colorado, and other gas-producing areas, cutting US natural gas supply while simultaneously boosting heating and power-plant demand. Front-month US natural gas prices nearly doubled from Jan. 16 to Jan. 26, creating major market dislocations. The setup is worth monitoring as a weather-driven supply/demand shock, though the speaker expects the event to pass relatively quickly and notes next-month futures are significantly lower than front-month.
NG HIGH
Dan Murtaugh Bloomberg Reporter 1:25
US cold snaps can tighten Europe/Asia gas.
US LNG is now closely linked to Europe and Asia after the Ukraine war forced Europe to rely on US imports. Higher US domestic gas prices can signal LNG plants to divert gas to domestic buyers instead of exporting it, potentially cutting supply to Europe. Over time, US cold snaps can affect European and Asian gas supply, although the speaker expects this particular event to pass quickly given the lower next-month futures contract.
UNG Asian natural gas MED
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This Bloomberg Markets video, published January 27, 2026, features Dan Murtaugh discussing NG, UNG, Asian natural gas. 2 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Dan Murtaugh  · Tickers: NG, UNG, Asian natural gas