US Natural Gas Inventories Hit 10-Year High Ahead of Winter

The U.S. Energy Information Administration (EIA) has released its August Short-Term Energy Outlook (STEO), which forecasts that natural gas inventories will reach a ten-year high of 3,985 billion cubic feet by October.

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

The outlook also predicts higher Brent crude oil prices, averaging $85 per barrel in the third quarter of 2026, due to decreasing global oil inventories. In contrast, natural gas prices are expected to decrease, with an average price of $2.87 per million British thermal units in the same period.

The EIA also forecasts growth in U.S. LNG exports through 2027, driven by new pipeline infrastructure and increasing demand for power generation. However, Texas Governor Greg Abbott's recent pause on new data center projects is expected to reduce electricity load growth in Texas, from 14% in the July STEO to 6% in 2027.