Natural Gas Prices Remain Under Pressure from Rising Storage and Seasonal Supply
Natural gas prices remain under pressure due to rising storage levels and expected seasonal supply increases. On September 11, natural gas traded at around $2.89/MMBtu after an attempted rebound from the $2.85 area.
The EIA report released yesterday showed a bearish outlook for Henry Hub, with inventories increasing by 40 Bcf to 3.254 Tcf for the week through September 4. However, the inventory structure remains uneven, with East adding 20 Bcf to 773 Bcf and Midwest another 18 Bcf to 908 Bcf.
The overall inventory level continues to rise, but the more flexible southern storage facilities are still noticeably tighter than the broader picture. Seasonal supply pressure remains dominant, with the EIA expecting around 3.969 Tcf of gas in storage by October 31, which is 5% above the 2021-2025 average and 1% above the October 2025 level.
The likelihood of continued pressure from the supply side increases until sustained heating demand begins, according to traders. LNG remains a key offsetting factor, with U.S. exports increasing by 23% y/y to 17.4 Bcf/d in the first half of 2026.