Commodities
EIA Lowers Natural Gas Storage Forecast but Holds Price Outlook Steady
The Energy Information Administration (EIA) has reduced its forecast for natural gas storage levels at the end of October, though this adjustment did not translate into a higher price projection for the Henry Hub benchmark.
Federal forecasters trimmed more than 100 billion cubic feet (Bcf) from their end-of-October storage outlook, tightening the supply cushion. Despite this, they maintained their Henry Hub price forecast at an average of $3.16 for 2027.
The EIA expects the storage surplus to narrow to just 2% by the end of the season. However, the impact of El Niño on winter heating demand remains a significant factor, potentially clouding the outlook for natural gas consumption.