Working natural gas stocks fell 360 billion cubic feet (Bcf) in the Lower 48 states for the week ending January 30, 2026, amid Winter Storm Fern-the largest weekly net withdrawal reported in the history of the Weekly Natural Gas Storage Report. The withdrawal exceeded the five-year average for the same week by 89% (170 Bcf). The large withdrawals resulted from increased heating demand for natural gas and natural gas production curtailments because of severe winter weather. Working gas stocks are now 1.1% below the five-year average for this time of year.
Average wholesale day-ahead electricity prices at most major trading hubs in the Lower 48 states were higher in 2025 than in 2024, driven largely by higher natural gas prices to electric generators. The largest increase in price was $29 per megawatthour (MWh) in New England's Independent System Operator (ISO-NE), and the largest decrease was $14/MWh in the upper Northwest's Mid-Columbia.
Over the past few years, Independent System Operator-New England (ISO-NE) has relied less on Canada for electricity. On January 16, 2026, the New England Clean Energy Connect (NECEC), a 1,200 megawatt (MW) transmission line project, began commercial operation. The new high-voltage direct current NECEC transmission line is primarily intended to increase the amount of hydroelectric power exported from Canada to New England. However, during Winter Storm Fern, New England exported more electricity to Canada than it imported.
Although petroleum accounts for less than 1% of total U.S. utility-scale electric power generation, regions such as New England rely on oil-fired units during winter periods when cold weather creates high demand. When Winter Storm Fern affected New England this week, petroleum was the predominant energy source starting around midday on January 24 and lasting until early morning on January 26. Since then, petroleum and natural gas have been fluctuating as the primary energy source.
In the week ending January 25, 2026, as Winter Storm Fern affected significant portions of the country, coal-fired electricity generation in the Lower 48 states increased 31% from the previous week. The increase contrasts with coal use in the earlier part of January, which had milder weather and consequently lower coal-fired generation compared with the same period in 2025.
Markets balanced geopolitical tension with signs of steady global oil demand.
Shell will pause investment in Kazakhstan as it navigates legal claims from the OPEC+ nation against oil majors that could stretch into the billions of dollars, Chief Executive Officer Wael Sawan said.
Saudi Arabia cut the price of its main oil grade for buyers in Asia to the lowest in years.
The Independent Petroleum Association of America announced that Dan Naatz has been promoted to Executive Vice President and Chief Policy Officer.
The energy complex was not immune to the broad sell-off in commodities over the past week, Standard Chartered Bank Energy Research Head Emily Ashford said.
