Natural gas spikes past $3 despite US inventory buildup
2017-10-12 19:16:09 GMT (
Natural gas spikes past $3 despite US inventory buildup

Natural gas futures spiked nearly four percent in American trade as the dollar index continued moving away from the highest since July 26 for the fifth session in a row, following a spate of data from the US, the world's largest energy consumer, including the EIA report that showed another inventory buildup for the 28th week in a row. 


As of 07:05 GMT, natural gas futures due on November 15 rallied 4.02% to $3.005 per million British thermal units from the opening of $2.906, with an intraday high at $3.008, and a low at $2.895, as the dollar index shed a measly 0.04% to 92.98 from the opening of 93.01. 


Earlier US data showed unemployment claims fell more than expected last week, as producers prices grew 0.4% in line with expectations in September, as core prices accelerated to 0.4% beyond forecasts. 


Federal Open Market Committee member Lael Brainard participated in a panel discussion about monetary policy at the Peterson Institute for International Economics, in Washington DC, while Jerome Powell delivered a speech titled "Prospects for Emerging Market Economies in a Normalizing Global Economy" at the Institute of International Finance Annual Membership Meeting, in Washington DC as well.


Otherwise, the Energy Information Administration released its report on US natural gas storage, showing a buildup of 87 billion cubic feet in the week ending October 6, adding to the previous reading's 42B increase, while analysts expected a 74B rise. 


Total stocks have now reached 3.595 trillion cubic feet, up from 3.508 trillion in the week ending September 29, which is below the total in the same period of 2016 at 3.748 trillion, and also below the five-year average of 3.603 trillion. 

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