January markets marked a recalibration from December’s cold-driven surge, with natural gas prices easing modestly as early-winter forecasts trended milder and production remained resilient. Prompt gas curves reflected reduced near-term weather risk, while the forward strip moderated from prior highs, signaling a cooling in sentiment without a fundamental shift in supply-demand balance.
Power forwards across PJM, NYISO, and ISO-NE remained supported despite softer volatility, as regional grid operators continued to flag reliability and fuel risks under prolonged cold scenarios. Tightening reserve margins, winter performance concerns, and structurally rising peak loads kept winter power pricing firm, particularly in constrained Northeast markets.
Looking ahead, structural forces continue to shape the 2026 outlook. Persistent electric load growth from electrification and data centers, ongoing interconnection and transmission constraints, and natural gas’s role as the marginal fuel are reinforcing higher forward price floors and sustaining long-term tightness across U.S. gas and power markets.
