Natural Gas Futures Plunge as U.S. Gas Prices Tick Up

Natural gas futures fell sharply today in U.S. trading after the Energy Information Administration reported larger‐than‐expected storage injections, while the national average gasoline price inched higher amid regional supply disruptions.

The downturn in futures underscores weakened demand prospects, and the small uptick in pump prices highlights localized pipeline outages.

Nut Graf

Traders reacted to the EIA’s weekly storage report showing a 90 bcf injection-well above forecasts of 81 bcf and last year’s 56 bcf-driving natural gas futures down 4.81% to $2.95/MMBtu on September 18, 2025. Meanwhile, AAA data revealed a national gasoline average of $3.203 per gallon, up one cent from last week following a Pacific Northwest pipeline outage that lifted regional prices.

Key Drivers

  • EIA Storage Build: Firms injected 90 bcf of gas in the week ending September 12, outpacing both forecasts (81 bcf) and the five‐year average (74 bcf), as mild weather suppressed heating and cooling demand.
  • Supply Dynamics: Lower 48 output averaged 107.4 bcfd in September, down from August’s record 108.3 bcfd, while LNG export flows eased to 15.7 bcfd from 15.8 bcfd in August.
  • Pipeline Disruption: A 400-mile Olympic Pipeline outage elevated pump prices in Oregon and Washington, contributing to the West Coast’s high gas rates and lifting the national average by one cent to $3.203 per gallon as of September 18.

Market Impact

Natural gas futures:

  • Closed at $2.95/MMBtu, down 4.81% from the previous day.
  • One‐month performance: up 6.68%; year‐over‐year: up 25.67%.

Gasoline metrics:

  • National average: $3.203 per gallon.
  • One week ago: $3.194; one month ago: $3.137; one year ago: $3.214.
  • U.S. gasoline demand rose from 8.50 million b/d to 8.81 million b/d, while supply dipped from 220 million to 217.6 million barrels.

Outlook

Analysts expect winter gasoline blends, now permitted from September 15, to ease Pacific Northwest prices by 35-65 cents over the next three to six weeks if refinery maintenance remains on schedule. Natural gas is forecast to trade near $2.99/MMBtu by quarter‐end and $3.09 in 12 months.