Natural Gas Holds Near Two-Month Low After 77 Bcf Storage Build

U.S. natural gas futures held near a two-month low on Thursday, October 22, 2026, after the Energy Information Administration reported a weekly storage injection close to analysts' expectations, Pipeline & Gas Journal reported. Inventories in the Lower 48 states now sit slightly above their five-year average heading into the winter heating season.

Storage rises 77 Bcf

Working gas in underground storage totaled 3,644 billion cubic feet (Bcf) as of Friday, October 16, a net increase of 77 Bcf from the previous week, according to the EIA's Weekly Natural Gas Storage Report, released at 10:30 a.m. Eastern time. Stocks were 152 Bcf lower than a year earlier and 35 Bcf above the 2021-2025 five-year average of 3,609 Bcf, the agency said. That leaves inventories 4.0% below last year's level and 1.0% above the five-year norm, within the historical range.

The build was in line with the 79 Bcf injection analysts had forecast, Pipeline & Gas Journal said. It compared with an 86 Bcf increase in the same week last year and a five-year average gain of 87 Bcf for the period.

Regional picture

The EIA data show additions in every region. The Midwest and South Central regions each added 28 Bcf, bringing Midwest stocks to 1,065 Bcf and South Central stocks to 1,125 Bcf. The East added 16 Bcf to 900 Bcf, while the Mountain and Pacific regions added 2 Bcf and 3 Bcf, respectively, to 257 Bcf and 297 Bcf.

Within the South Central region, salt-cavern storage, which can be filled and drawn down quickly, rose 15 Bcf to 251 Bcf. That level is 21.1% below a year ago and 14.9% below the five-year average, the largest shortfall of any category in the report. Non-salt facilities in the region held 875 Bcf, 0.5% above their five-year average. South Central inventories overall were 10.0% below last year and 3.4% below the five-year average, while the East, Midwest, Mountain and Pacific regions were all above their five-year averages.

Futures and forward prices

Front-month November futures on the New York Mercantile Exchange rose 0.7 cent to $2.797 per million British thermal units (MMBtu) after the report, according to Pipeline & Gas Journal. On Wednesday, the contract had closed at its lowest level since August 25.

Longer-dated contracts have also weakened. Calendar 2027 futures fell to a 56-month low of $3.12 per MMBtu, and the 12-month strip dropped to a 23-month low of $2.93, the publication reported, describing the moves as a sign the market is not worried about supply meeting demand in the coming months.

Output, demand and exports

Average gas output in the Lower 48 states slipped to 111.6 Bcf per day so far in October, down from record highs of 113.3 Bcf per day in August and September, according to LSEG data cited by Pipeline & Gas Journal. LSEG forecast that average demand in the Lower 48, including exports, would rise from 106.7 Bcf per day this week to 107.8 Bcf per day next week as colder weather arrives.

Gas flows to the nine major U.S. liquefied natural gas (LNG) export plants averaged 18.1 Bcf per day so far in October, up from 17.9 Bcf per day in September but below the monthly record of 18.8 Bcf per day set in April.

Gap with overseas prices

Overseas benchmarks are far higher. Gas traded near $29 per MMBtu at the Dutch Title Transfer Facility in Europe and near $30 at the Japan-Korea Marker in Asia, both 46-month highs, Pipeline & Gas Journal reported. U.S. prices have not followed those gains because domestic LNG plants are already operating near capacity, limiting additional exports until new liquefaction units begin service, the publication said.

The EIA's next weekly storage report is scheduled for release on Thursday, October 29.