The EIA's weekly storage report showed a 73 Bcf injection for the week ending June 12, characterized as bullish by market analysts at Natural Gas Intelligence. This continued the season-long trend of injections lagging year-earlier levels, reflecting stout cooling demand across most of the US during the survey period.
Working gas in storage stands at approximately 2,483 Bcf, 144 Bcf above the five-year average and 21 Bcf above last year. The surplus has narrowed significantly from earlier in the year when storage was more than 200 Bcf above the five-year average. NatGasWeather noted that it was hotter than normal over most of the US during the survey period, driving elevated cooling demand.
July Henry Hub futures settled higher after the report, with prices firming into the low $3/MMBtu range. However, traders continue to weigh strong production growth against still-comfortable inventories and an uncertain weather outlook. The EIA projects US dry gas production rising to record levels in 2026.
The American Gas Association noted that mild shoulder season demand and healthy storage injections continue to weigh on domestic natural gas prices, even as LNG feedgas demand sits well above year-ago levels. Global geopolitical tensions around the Strait of Hormuz continue to support global gas prices.
The narrowing storage surplus signals that the deep oversupply that depressed gas prices is transitioning toward a tighter balance. For gas buyers, the key question is whether summer heat and LNG demand growth can outpace record production. The EIA expects Henry Hub prices to rise through 2026 as LNG exports absorb surplus production. Consider locking in winter 2026-2027 contracts at current $3.20-3.30 levels, which are well below the $4+ levels that winter strip typically commands.