Natural gas sheds 1% despite US inventory drawdown

Natural gas futures fell nearly one percent as the dollar index rebounded for the second session from the lowest since October 20, following earlier data from the US, the world's largest energy consumer, including the EIA report that showed a more-than-expected inventory drawdown. 

As of 08:52 GMT, natural futures due on December 15 declined 0.94% to $3.087 per million British thermal units from the opening of $3.080, with an intraday low at $3.046, and a high at $3.110, while the dollar index rose 0.13% to 93.94 from the opening of 93.81.

Earlier US data showed unemployment claims rose to 249 thousand in the week ending November 11 from 239 thousand in the previous reading, while analysts expected a drop to 235 thousand, as import prices slowed down to 0.2% from 0.8% in September. 

The Philly Manufacturing Index slowed down sharply to 18.9 in November from 27.9 in October, missing analysts' expectations of a smaller drop to 24.5. 

US industrial production rose 0.9% in October, accelerating from 0.4% in September, revised upwards from 0.3%, while analysts expected a 0.5% increase, and finally, the Capacity Utilization Rate rose to 77.0 in October from 76.4%, beating expectations of a dip to 76.3%.

The Energy Information Administration released its report on US natural gas inventories, showing a drop of 18 billion cubic feet in the week ending November 11, compared to a 15B buildup in the previous reading, while analysts expected a 15B drawdown. 

Total stocks have now fallen to 3.772 trillion cubic feet from 3.790 trillion in the week ending November 3, which is below the total of the same period of 2016 at 4.043 trillion, and also below the five-year average at 3.873 trillion.