Natural gas climbs after US inventory data

Natural gas futures rose in American trade as the dollar index climbed from August 2 lows, following earlier data the world's largest energy importer, and shrugging off US data that showed another inventory build for the 16th week in a row. 

As of 07:41 GMT, natural gas futures due in September fell 0.54% to $2.97 per million British thermal units, while the dollar index rallied 0.55% to 95.67 against an an array of main rivals. 

US Inventory Build 

The Energy Information Administration released its report on US natural gas storage, showing a buildup of 48 billion cubic feet in the week ending August 17, compared to a 33 billion buildup in the previous reading, while analysts expected a 47 billion increase. 

Total inventories are now up to 2.435 trillion cubic feet from 2.387 trillion in the week ending August 10, which is below the total of the same period in 2017 at 3.119 trillion, while also below the five-year average at 3.034 trillion. 

Otherwise, earlier Chinese data showed an index that tracks the readings of 8 economic indicators that cover the major sectors in the economy, up 1.1% in July, compared to a 0.9% increase in June. 

Now investors await the results of low-level US-China trade talks, which started yesterday in Washington, with China's foreign ministry expressing hopes for reaching good results that would lessen trade tensions between the two sides. 

US Labor, Housing Data 

Earlier US data showed unemployment claims fell to new lows in the week ending August 18 to 212 thousand, besting estimates of 215 thousand, while continuing claims fell 2 thousand to 1.727 million in the week ending August 11, besting estimates of 1.730 million.

The flash Markit readings for manufacturing PMI receded to 54.5 from 55.3 in July, missing estimates of 55.1, while also receding to 55.2 for services PMI, missing expectations of 55.9.

US new home sales fell 1.7% in July to an annualized 627 thousand units, compared to a 2.4% drop in June to 638 thousand, revised from 631 thousand, while analysts expected a 2.2% rise to 643 thousand. 

On Wednesday, the Federal Open Market Committee released the minutes of its late July-early August meeting, with policymakers discussing the strong pace of economic expansion, which requires policy intervention to raise interest rates and control inflation before breaking out the 2% target consistently. 

In an interview with Reuters earlier this week, US President Donald Trump once again accused China of manipulating its yuan to make it weaker, while also panning Europe for allegedly conducting a similar strategy with euro.