Natural gas prices drop despite US inventory drawdown

Natural gas futures lost over one percent in American trade even as the dollar index declined for the first time in five sessions, following earlier data from the US, the world's largest energy consumer, including the EIA report that showed an inventory drawdown for the tenth straight week. 

As of 08:12 GMT, natural gas futures due on March 15 shed 1.35% to $2.623 per million British thermal units from the opening of $2.659, while the dollar index slid 0.30% to 89.73 from the opening of 90.00. 

Earlier US data showed unemployment claims fell 7 thousand to 222 thousand from 229 thousand in the previous reading, below expectations of 230K, while continuing claims in the week ending February 10 fell 73 thousand to 1.875 million from 1.948 million, also sharply below forecasts of 1.938 million. 

Federal Reserve Bank of New York President William Dudley spoke earlier today about the economic situation in Puerto Rico and the United States Virgin Islands, following Hurricanes Irma and Maria, at a press briefing hosted by the Federal Reserve Bank of New York, while Federal Reserve Bank of Atlanta President Raphael Bostic spoke at the Banking Outlook Conference hosted by the Federal Reserve Bank of Atlanta.

The Energy Information Administration released its report on US natural gas inventories, showing a drawdown of 124 billion cubic feet in the week ending February 16, adding to the 194B drop in the previous reading, while analysts expected a 121B deficit. 

Total stocks now fell to 1.760 trillion cubic feet from 1.884 trillion in the week ending February 9, which is below the total of the same period in 2016 at 2.369 trillion, while also below the five-year average at 2.172 trillion.