09:24 AM EDT, 04/18/2022 (MT Newswires) -- Benchmark natural gas rose to another 14-year high early on Monday as a winter storm in the Northeast is expected to bolster demand while supply remains tight.
Gas for May delivery was last seen up US$0.26 to US$7.56, the highest since the autumn of 2008.
The rise comes after the Energy Information Administration on Thursday reported a smaller than expected rise in US inventories in the prior week as cool weather and high LNG exports boosted demand.
"Injections should remain subdued these next few weeks as lingering colder weather limits inventory builds. The withdrawal season is now concluded and storage inventories entered the shoulder season at 1.382 Tcf. Storage levels are currently 18% below the 5-year average versus sitting slightly above average at the start of the calendar year, but remain at fairly comfortable levels. There is a fundamentally constructive backdrop driven by record LNG outflows, strong Mexico exports, and producer discipline," RBC Capital Markets said in a Thursday note.
A winter storm is moving into the Northeast, bringing heavy wet snow to the region on Monday and Tuesday and unseasonable cold, according to the National Weather Service.