US Gas Inventories Hit Highest Level in Over a Decade Amid Winter Approaches

The US Energy Information Administration (EIA) has forecasted that natural gas inventories will reach their highest levels in over a decade as winter approaches. In its August Short-Term Energy Outlook, the EIA predicts that natural gas inventories will increase to 3,985 billion cubic feet in October.

This surge in inventories is attributed to increased natural gas production and reduced feedgas due to maintenance at liquefied natural gas (LNG) facilities. The EIA's Administrator, Tristan Abbey, noted that 'more natural gas in inventories in the fall season provides a cushion for increased heating-related consumption during the winter.'

The EIA has also revised its estimates of global oil market assumptions, predicting a decrease in global oil inventories and higher Brent crude oil prices averaging $85 per barrel in 3Q26. However, as inventories rebuild and production increases by early 2027, prices are expected to drop to an average of $69 per barrel.

The EIA also forecasts US LNG exports to average 16.5 billion cubic feet per day in 3Q26, a slight decrease from July's forecast due to maintenance at the Freeport LNG facility. Nevertheless, growth in US LNG exports is expected through 2027.