Natural Gas Prices Fall Even After a Record Storage Withdrawal

Intermediate | February 12, 2026

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A Weird Market Day: Bad News… But Prices Drop

U.S. natural gas prices fell about 2% even though the government reported the largest weekly storage withdrawal on record. This kind of record natural gas storage withdrawal usually grabs traders’ attention fast. In plain English: Americans pulled a huge amount of natural gas out of storage during a major winter storm—yet traders still pushed prices lower. That sounds backwards, but it happens when the market thinks the worst demand spike is already over.

Record Natural Gas Storage Withdrawal: The Number Everyone Was Watching

The U.S. Energy Information Administration (EIA) reported that working gas in storage dropped by 360 billion cubic feet (Bcf) for the week ending January 30, 2026. EIA said this was the largest weekly net withdrawal in the history of its Weekly Natural Gas Storage Report, driven by higher heating demand and production curtailments during Winter Storm Fern. (EIA – Today in Energy)

If you want to check the raw numbers yourself, the weekly storage page lists the same 2,463 Bcf remaining after the draw. (EIA – Weekly Natural Gas Storage Report)

So Why Didn’t Prices Jump?

Because markets trade the future, not just the headline. Coverage of the selloff said traders focused on expectations for warmer weather and lower demand ahead, plus the idea that the withdrawal—while record-setting—may have been smaller than some forecasts going into the report. When expectations are already “priced in,” the market can shrug and move the other direction.

The Storm Factor: Demand Up, Supply Messy

Winter Storm Fern didn’t just raise demand; it also disrupted supply. Analysts noted that severe cold can cause production problems (“freeze-offs”) and strain pipeline operations. Energy outlets also reported big regional price swings and volatility around the storage report. (Natural Gas Intelligence)

What This Means for Regular People

If you heat your home with natural gas, this kind of volatility matters—especially in winter. Even when futures prices fall, local utility bills can stay high because bills reflect regional supply constraints, delivery costs, and what utilities paid earlier. For businesses, it’s a reminder that “energy prices” aren’t just about supply—they’re about expectations, weather risk, and how quickly the market thinks things will normalize.

The Bigger Picture: Watch What Happens Next

The story isn’t only the record draw—it’s what happens after it. If cold weather sticks around or another storm hits, storage can tighten fast. But if forecasts warm up and production rebounds, the market can cool down quickly too. Either way, this is a great example of how markets sometimes say: “Nice headline… but we’re already on to next week.” And yes—this record natural gas storage withdrawal will stay on everyone’s watchlist until the next storage report lands.

Vocabulary

Withdrawal (noun) – taking something out of a supply that was stored.
Example: “The EIA reported a record withdrawal from natural gas storage.”
Storage (noun) – a place where something is kept for later use.
Example: “Storage levels fell sharply after the winter storm.”
Futures (noun) – contracts to buy or sell something at a set price in the future.
Example: “Natural gas futures dropped even after the record draw.”
Demand (noun) – how much people want or need a product.
Example: “Heating demand jumped during the cold snap.”
Supply (noun) – how much of something is available.
Example: “Supply tightened when production was disrupted by extreme cold.”
Forecast (noun) – a prediction about what will happen, often about weather.
Example: “A warmer forecast can push gas prices down.”
Priced in (phrase) – already included in the market price because people expected it.
Example: “Traders had already priced in the record withdrawal.”
Volatility (noun) – rapid and unpredictable changes.
Example: “The market showed volatility around the storage report.”
Curtailment (noun) – a reduction or limitation.
Example: “Production curtailments increased during the storm.”
Constraint (noun) – a limit that makes something harder.
Example: “Pipeline constraints can cause regional price spikes.”

Discussion Questions (About the Article)

What was the record storage withdrawal number, and who reported it?
Why might prices fall even when storage drops sharply?
How can weather disrupt both demand and supply at the same time?
What does it mean when traders say news is “priced in”?
Why might your home heating bill stay high even if futures prices fall?

Discussion Questions (About the Topic)

Should governments release energy data more often in extreme weather? Why?
What are the pros and cons of relying heavily on natural gas for heating?
How should businesses protect themselves from energy price volatility?
Why do you think energy prices swing so quickly during storms?
How do you personally react when your utility bills rise unexpectedly?

Related Idiom

“Don’t judge a book by its cover” – don’t decide based only on what you see at first.

Example: “A record storage withdrawal sounds bullish, but the market looked ahead—so don’t judge the price move by the headline.”

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This article was inspired by: The Epoch Times, EIA, and Natural Gas Intelligence.