Natural gas sheds one percent after US storage buildup

Natural gas futures fell nearly one percent in American trade as the dollar index hit the highest since August 17, following a stream of data from the US, the world's largest energy consumer, including the EIA report that showed another storage buildup for the 27th week in a row. 

As of 08:05 GMT, natural gas futures due on November 15 dropped 0.65% to $2.921 per million British thermal units from the opening of $2.940, with an intraday low at $2.914, and a high at $2.995, while the dollar index added 0.53% to 93.95 from the opening of 93.46. 

Earlier US data showed the trade deficit fell to $42.4 billion in August, while unemployment claims fell more than expected to 260 thousand, after Federal Open Market Committee member Jerome Powel spoke about the Treasury Markets Practices Group at the Federal Reserve Bank of New York.

Additionally, Federal Reserve Bank of Philadelphia President Patrick Harker spoke at the Investing in America's Workforce Conference hosted by the Federal Reserve System, in Austin; where he expected three rate hikes this year and for economic growth to surpass 2% by the end of this year, noting that the skilled labor shortage is one of the most important challenges facing the US economy. 

Otherwise, US factory orders rose 1.2% in August, compared to a 3.3% tumble in July, while analysts expected just a 1.0% rise. 

 More pertinently, the Energy Information Administration released its report on US natural gas stocks, showing a buildup of 42 billion cubic feet in the week ending September 29, adding to a 58B buildup in the previous reading, while analysts expected a 56B increase. 

Total stocks have now risen to 3.508 trillion cubic feet from 3.466 trillion in the week ending September 22, which is below the total of the same last year at 3.669 trillion, and also below the five-year average at 3.516 trillion.