Natural gas prices tumble over two percent after forecast-missing U.S. inventory drawdown
Natural gas prices slumped over two percent in American trade, shrugging off the dollar's fall, which follows a stream of data from the U.S., the world's largest energy consumer, including the EIA inventory report, which showed a less-than-expected inventory drawdown
As of 08:56 GMT, natural gas prices due on March 16 slid 2.46% to $2.853 per million British thermal units from the opening price of $2.925, with a session-high at $2.953, and a three-month low at $2.847, while the dollar index shed 0.72% to 100.46 from the opening of 100.96.
Earlier U.S. data showed building permits up to 1.29 million in January from 1.23M in the previous reading, revised higher from 1.21M, while analysts expected 1.23M.
Housing starts fell to 1.25 million last month from 1.28M in December, revised higher from 1.23M, while still beating expectations of 1.23M.
On the same note, the Philly Manufacturing index jumped to 43.3 in February from 23.6 in January, handily beating expectations of 18.5, while unemployment claims fell to 239 thousand in the week ending February 11 from 243K, while analysts expected 245K.
Continuing claims fell to 2.076 million in the week ending February 4, down from 2.078M, while analysts expected 2.058M.
Finally, the Energy Information Administration released its report on U.S. natural gas stocks, showing a drawdown o 114 billion cubic feet in the week ending February 10, adding to the previous reading's 1.52B drawdown, while analysts expected a 130B fall, with the total now reaching 2.445 trillion cubic feet, down from 2.559 trillion in the previous week, which is lower than the same period in 2016 at 2.748 trillion, while higher than the five-year average at 2.358 trillion.