EIA Sees Highest Natural Gas Inventories in Over a Decade Ahead of Winter

The US Energy Information Administration (EIA) is forecasting that natural gas inventories will reach their highest level in over a decade by October, just ahead of the winter heating season. The EIA expects natural gas inventories to increase to 3.985 billion ft^3 in October, surpassing the previous high set in 2016.

The forecast is based on increased natural gas production and reduced feedgas stemming from LNG facility maintenance. According to the EIA, this will provide a cushion for increased heating-related consumption during the winter months.

The EIA also forecasts that global oil inventories will decrease, leading to higher Brent crude oil prices averaging $85/bbl in 3Q26. However, as inventories rebuild and production increases by early 2027, prices are expected to gradually drop to an average of $69/b in 2027.

US LNG exports are also expected to increase, with the EIA forecasting 16.5 billion ft^3/d in 3Q26. This growth is driven by Mexico's new Energia Costa Azul terminal and higher US gas consumption for power generation.