Natural gas dips despite large US inventory drawdown

Natural gas futures fell in American trade to December 27 lows as the dollar index rose to January 23 highs, following earlier data from China, the world's largest energy importer, and the US, the world's largest consumer, including the EIA report that showed another inventory drawdown for the eighth week in a row. 

As of 08:58 GMT, natural gas futures due on March 15 fell 0.33% to $2.693 per million British thermal units from the opening of $2.702, while the dollar index rose 0.09% to 90.34 from the opening of 90.26. 

Earlier data from China showed the trade surplus shrank to $20.34 billion from $54.69 billion in December, missing expectations of $54.65 by a wide margin, as imports outstripped exports. 

Earlier US data showed unemployment claims fell to 221 thousand in the week ending February 3 from 230 thousand, beating expectations of 232 thousand, while continuing claims fell by 23 thousand in the week ending January 27 to 1.923 million from 1.956 million, while analysts expected 1.940 million. 

The Energy Information Administration released its report on US natural gas inventories, showing a drawdown to 119 billion cubic feet in the week ending February 2, adding to a 99B drop in the previous reading, while analysts expected a 116B drop. 

Total stocks have now fallen to 2.078 trillion cubic feet from 2.197 trillion in the week ending January 26, which is below the total of the same period in 2016 at 2.581 trillion, and also below the five-year average at 2.471 trillion.