Natural Gas Storage Builds by 80 Bcf, Pressures Prices Amid Mild Weather and Ample Supply

The U.S. natural gas market is feeling the weight of high storage levels and unseasonably mild weather, as the latest storage report from the Energy Information Administration (EIA) shows a net injection of 80 billion cubic feet (Bcf) for the week ending October 10, 2025. This addition brings total working gas in storage to 3,721 Bcf across the Lower 48 states, placing inventories 26 Bcf higher than the same time last year and 154 Bcf above the five-year average of 3,567 Bcf.

The data highlights a market that remains well supplied heading into the core heating season. Although the injection was in line with expectations for this time of year, the growing surplus above both historical and seasonal averages is exerting downward pressure on prices. As of this week, U.S. natural gas futures have fallen to around $3.05 per million British thermal units (MMBtu), marking a three-week low.

Much of the current softness in the market is being driven by weather forecasts that show warmer-than-normal conditions persisting through the latter half of October. These mild temperatures are keeping heating demand in check, delaying the seasonal uptick in consumption typically seen during this period. With significant cooling not expected until the final week of the month, storage injections are likely to continue, pushing inventories even higher.

Regionally, the largest weekly increases were reported in the Midwest and East, which added 30 Bcf and 23 Bcf, respectively. The South Central region, which includes both salt and non-salt storage facilities, saw a combined build of 20 Bcf. Storage levels in the Pacific and Mountain regions rose more modestly but still contributed to the overall supply picture. All regions remain comfortably within their five-year historical ranges, with some exceeding seasonal norms.

While domestic demand remains muted, liquefied natural gas (LNG) exports continue to offer critical support to the broader market. Feedgas deliveries to U.S. liquefaction terminals have risen sharply in October, reaching a six-month high following the return of the Cove Point LNG facility from maintenance. Despite this strength in exports, the effect has been overshadowed in recent days by the larger story of robust storage and weak weather-driven demand.

On the production side, output from the Lower 48 states has averaged 106.4 Bcf per day so far in October, a slight decline from September and below the record highs set earlier in the summer. This dip, however, has not been enough to offset the earlier surge in supply that helped fill storage facilities more aggressively during the injection season.

With inventories now sitting roughly 4 percent above average for this time of year, and no immediate signs of a shift in the weather pattern, natural gas prices may remain under pressure in the near term. Market participants are watching closely for any changes that could tip the balance — whether from a surprise cold snap, production cuts, or continued strength in LNG demand.

As the end of the injection season approaches, the natural gas market finds itself in a waiting game. Storage levels are healthy, demand remains subdued, and prices are responding accordingly. The coming weeks will be critical in determining whether this trend holds or if early winter weather finally sparks the kind of demand needed to shift the current trajectory.