Natural gas advances after lower-than-expected US inventory buildup

Natural gas futures rose nearly one percent in American trade as the dollar index declined for the second straight session, following an array of data from China and the US, the world's largest economy, including the EIA report that showed a lower-than-expected inventory buildup for the 29th week in a row. 

As of 07:37 GMT, natural gas futures due on November 15 rose 0.60% to $2.871 per million British thermal units from the opening of $2.854, with an intraday high at $2.884, and the lowest since August 7 at $2.773, while the dollar index shed 0.14% to 93.23 from the opening of 93.36. 

Earlier data from the China, the world's second largest energy consumer, showed the seasonally adjusted reading for third quarter GDP with a 1.7% growth rate in line with expectations, down from 1.8% in the second quarter, while on a yearly basis, growth slowed down as well to 6.8% to 6.9%, as both retail sales and industrial production accelerated in September. 

Otherwise, earlier US data showed unemployment claims down to 222 thousand from 244 thousand, below expectations of 240K, while the Philly manufacturing index jumped to 27.9 in October from 23.8 in September, besting expectations of 21.9, as the CB leading index dipped unexpectedly in May, and finally, President Donald Trump is scheduled to meet with Federal Reserve Chair Janet Yellen later.

 More pertinently, the Energy Information Administration released its report on US natural gas inventories, showing another buildup of 51 billion cubic feet in the week ending October 13, adding to the previous reading's 87B increase, while analysts expected a 59B rise. 

Now total stocks rose to 3.646 trillion cubic feet from the 3.585 trillion in the week ending October 6, which is below the total in the same period of 2016 at 3.825 trillion, and also below the five-year average at 3.681 trillion.