Natural gas sheds 1% after disappointing US inventory data

Natural gas futures slid over one percent to below $3 even as the dollar index hit a one-week trough, following a stream of US data, including the EIA report that showed a less-than-expected inventory drawdown last week.

As of 07:46 GMT, natural gas futures due on December 15 declined 1.26% to $2.979 per million British thermal units from the opening of $3.017, with an intraday low at $2.958, and a high at $3.027, while the dollar index fell 0.52% to 93.46 from the opening of 93.95. 

Earlier US data showed durable goods order fell 1.2% in October, missing expectations of a 0.4% rise, and compared to September's 2.0% rise, while core orders, excluding transportation, rose 0.4% in line with expectations, while down from September's 0.7% growth. 

US unemployment claims fell to 239 thousand in the week ending November 18, besting expectations of a drop to 241K, and compared to the previous reading's 252K, revised higher from 249K. 

The University of Michigan's final reading of the Consumer Sentiment survey rose to 98.5 from the preliminary reading of 97.8, compared to 100.7 in October, while the economic conditions and outlook indicators fell, as inflation outlook varied for one and five-year terms. 

Later today, the Federal Reserve will release the minutes of its last policy meeting, at which policymakers voted to hold interest rates unchanged between 1.00% and 1.2%, while pointing to strong US growth and improvement in the labor sector, and downplaying concerns about the recent hurricanes that hit the US, and asserting their work to normalize the balance sheet, a process which started in October.

The Energy Information Administration released its report on US  natural gas stocks, showing a drawdown of 46 billion cubic feet in the week ending November 18, adding to a 18B drop in the previous reading, while analysts expected a 51B drawdown. 

Total stocks have now fallen to 3.726 trillion cubic feet from 3.772 trillion in the week ending November 11, which is below the total of the same period of 2016 at 4.045 trillion, and also below the five-year average at 3.847 trillion.