Natural gas futures rally over 1% in American trade

Natural gas futures rose over 1% even as the dollar index gained ground away from the lowest since June 23, 2016, following earlier data from the US, including the EIA report that showed a smaller than expected inventory buildup. 

As of 07:16 GMT, natural gas futures due on August 15 rose 1.23% to $2.960 per million British thermal unit from the opening of $2.926, with an intraday high at $2.998, and a low at $2.904, while the dollar index rose 0.28% to 93.93 from the opening of 93.67. 

Earlier US data showed durable goods orders rose above expectations in June, as core orders, excluding transportation, slowed down unexpectedly. 

Similarly, the US goods trade deficit shrank more than expected, as wholesale inventories rose sharply in May past forecasts, and finally, unemployment claims rose more than expected last week. 

Otherwise, the Energy Information Administration released its report on US natural gas inventories, showing a buildup of 17 billion cubic feet in the week ending July 21, scaling down from 28 billion in the previous reading, while analysts expected the same 28B increase. 

Total stocks have now reached 2.990 trillion cubic feet, up from 2.973 trillion in the week ending July 14, which is below the total in the same period of 2016 at 3.292 trillion, while above the five-year average at 2.879 trillion.