Natural gas prices lose ground after inventory buildup

Natural gas prices tilted lower as the dollar index hovered near a 15-month low, following earlier data from the US, the world's largest energy consumer, including the EIA report that showed another inventory buildup last week. 

As of 08:38 GMT, natural gas futures due on September 15 fell 0.50% to $2.797 per million British thermal units from the opening of $2.811, with an intraday low at $2.793, and a high at $2.846, while the dollar index added 0.02% to 92.85 from the opening of 92.84. 

Earlier US data showed unemployment claims down more than expected to 240 thousand, while earlier this week, the ADP employment change survey rose 178 thousand last month, slowing down from the previous reading. 

Additionally, the US ISM services PMI fell more than expected to 53.9 in July, while factory order rose 3.0% in June, beating forecasts. 

The Energy Information Administration released its report on US natural gas stocks, showing a buildup of 20 billion cubic feet in the week ending July 28, up from a 17B buildup in the previous reading, while analysts expected a 23B increase. 

Total stocks now reached 3.010 trillion cubic feet from 2.990 trillion in the week ending July 21, which is below the total in the same period of 2016 at 3.289 trillion, and above the five-year average of 2.923 trillion.