Natural gas falls off five-week high

Natural gas futures tumbled three percent in American trade away from March 14 highs as the dollar index rebounded from March 27 lows for the third straight session, despite earlier US data that showed natural gas inventories fell for the eighteenth week in a row. 

As of 07:19 GMT, natural gas futures due on May 15 fell 2.67% to $2.666 per million British thermal units from the opening of $2.739, marking one-week lows, while the dollar index rose 0.30% to 89.89 from the opening of 89.62, marking one-week highs. 

Federal Reserve Governor Lael Brainard spoke earlier today about regulatory reform at the Global Finance Forum, in Washington DC, where she noted that inflation rates remain stable with no sign of imbalance. 

Brainard cautioned from a new economic stage where assets and financial leverages rise, before earlier US data showed unemployment claims fell 1 thousand to 232 thousand from 233 thousand, above expectations of 230K. 

The Philly Manufacturing Index rose to 23.2 from 22.3 in March, beating expectations of 20.8, while Federal Reserve Governor Randal Quarles testified on supervision and regulation before the Senate Banking Committee, in Washington D, where he said cryptocurrencies don't represent threats to financial stability, while calling on small banks to come up with new rules to financial liquidity. 

More pertinently, the Energy Information Administration released its report on US natural gas inventories, showing a deficit of 36 billion cubic feet in the week ending April 13, adding to the 19B drop in the previous reading, and compared to expectations of a 23B drawdown. 

Total inventories fell to 1.299 trillion cubic feet from 1.335 trillion in the week ending April 6, which is below the total of the same period in 2017 at 2.107 trillion, while also below the five-year average at 1.748 trillion.