U.S. Gas Inventories Rise 77 Billion Cubic Feet, Remain Below Year-Earlier Levels

Key Facts

Working gas inventories in underground storage facilities in the contiguous United States rose by 77 billion cubic feet in the week ended October 16, 2026, according to a U.S. Energy Information Administration report released on October 22. Total inventories reached 3,644 billion cubic feet, compared with 3,567 billion in the week ended October 9, as the customary gas injection season neared its end ahead of heating demand. The increase fell short of expectations for a rise of 80 billion cubic feet cited in Investing.com's economic calendar for the current release. However, it exceeded the increase of 67 billion cubic feet announced in the October 15 release, which had itself fallen short of expectations of 76 billion, according to the platform. Despite the weekly increase, total inventories remained 4.0% below their level in the corresponding period a year earlier, when they stood at 3,796 billion cubic feet. Inventories were, however, 1.0% above the average of 3,609 billion cubic feet for the corresponding week over the period from 2021 to 2025. Inventories thus approached the winter withdrawal season slightly above their historical average, but below last year's level.

Regionally, South Central inventories rose by 28 billion cubic feet during the week to 1,125 billion, according to the EIA. Nevertheless, the region's inventories remained 10.0% below their year-earlier level, a larger annual deficit than that recorded for the contiguous United States as a whole. South Central inventories were also 3.4% below their historical average, in contrast to the surplus recorded nationally. Alongside regional distribution, the flexibility of storage facilities varies by type; the EIA explains in its underground storage reference that salt caverns allow "very high withdrawal and injection rates relative to their working gas capacity." This characteristic gives salt caverns a high capacity to move gas in and out relative to the volume of inventories they can hold.

The inventory increase comes as the EIA forecasts simultaneous growth in U.S. gas production and liquefied natural gas exports, according to its short-term outlook released in October. It estimated average dry natural gas production at 112.2 billion cubic feet per day in 2026, compared with 107.6 billion in 2025. The agency expects production to continue rising to an average of 116.1 billion cubic feet per day in 2027. On exports, it estimated total U.S. LNG shipments at an average of 17.6 billion cubic feet per day in 2026, compared with 15.1 billion in 2025. It raised its export estimate to 18.6 billion cubic feet per day in 2027. These forecasts put rising domestic supply alongside expanding LNG flows abroad over the two years covered by the agency's estimates.

The inventory report comes near the end of the period when gas is typically accumulated for winter use, according to the Federal Energy Regulatory Commission. The commission explains that gas is usually injected into storage facilities from April to October, while the withdrawal season runs from November to March to meet heating demand. The EIA warned in its October outlook that "sustained periods of cold weather could increase withdrawals" above its estimates. Last winter provided an example of the scale of withdrawals possible during severe cold, with the week ended January 30 recording a record withdrawal of 360 billion cubic feet, according to the agency. That record weekly withdrawal came amid the impact of severe cold on inventories during the previous heating season.

In the futures market, natural gas contracts fell 5.84% to $2.790 in the October 21, 2026 session ahead of the inventory report, according to Investing.com's historical data. The decline came in the session preceding the release of the weekly inventory figures. For the remainder of the storage season, the EIA forecast in its October report that inventories would reach 3,850 billion cubic feet by the end of the month. The agency said inventory accumulation could continue until mid-November, depending on market and weather conditions. An extension of injections until that date remains conditional on those circumstances, according to its outlook. The agency is scheduled to release its next weekly natural gas storage report on October 29, 2026.