Natural gas rises to four-month high after US inventory data

Natural gas futures rose nearly one percent in American trade to early February highs, while the dollar index fell off five-month highs, following earlier US data that showed a dip in the weekly inventory buildup. 

As of 07:58 GMT, natural gas futures due on June 15 climbed 0.86% to $2.939 per million British thermal units from the opening of $2.914, while the dollar index fell 0.24% to 93.78 from the opening of 94.00. 

Earlier US data showed unemployment claims rose 9 thousand to 234 thousand from 223 thousand, above expectations of 220 thousand, while continuing claims rose 29 thousand in the week ending May 12 to 1.741 million from 1.712 million, below estimates of 1.746 million. 

The House Price Index rose 0.1%, down from 0.6% in February, and missing forecasts of 0.5%, while existing home sales fell 0.9% to an annualized 5.50 million units, compared to a 1.1% rise in March to 5.60 million. 

Federal Reserve Bank of Atlanta President Raphael Bostic said in earlier remarks that three rate hikes this year would be appropriate, considering a range of 2.25% to 2.75% as suitable for interest rates. 

Bostic said President Trump's decision to cancel a summit with North Korean leader Kim Jong Un in Singapore could create more tensions in markets. 

The Energy Information Administration released its report on US natural gas inventories, showing a buildup of 106 billion cubic feet in the week ending May 11, up from 89 billion in the previous reading, while analysts expected a 105 billion buildup. 

Total stocks now reached 1.538 trillion cubic feet, up from 1.432 trillion in the week ending May 4, but still below the total of the same period in 2017 at 2.359 trillion, while also below the five-year average at 2.039 trillion.