Natural gas climbs despite US inventory build, dollar's advance

Natural gas futures rose over one percent in American trade as the dollar index pared gains near August 16 highs, while shrugging off earlier US data that showed another inventory build for the 25th week in a row. 

As of 07:24 GMT, natural gas futures due in November rose 1.17% to $3.20 per million British thermal units, while the dollar index added 0.26% to 96.69, marking two-month highs. 

US Inventory Build 

The Energy Information Administration released its report on US natural gas storage, showing a build of 58 billion cubic feet in the week ending October 19, adding to the 81 billion addition in the previous reading, while analysts expected a 47 billion increase. 

Total stocks are now up to 3.095 trillion cubic feet from 3.037 trillion in the week ending October 12, making them below the total of the same period in 2017 at 3.701 trillion, while also below five-year averages at 3.710 trillion. 

US Labor, Trade Data 

Earlier US data showed durable goods orders rose 0.8% in September, slowing down sharply from 4.4%, while beating estimates of a 1.3% drop. 

The goods trade deficit widened to $76 billion from $75.5 billion in August, while wholesale inventories rose 0.3%, in addition to the 1% increase in August, while analysts expected a 0.5% addition. 

Unemployment claims rose 5 thousand in the week ending October 20 to 215 thousand, almost matching estimates of 214 thousand.

Continuing claims fell 5 thousand in the week ending October 13 to 1.636 million, below estimates of 1.644 million. 

US pending home sales rose 0.5% m/m in September, compared to a 1.9% drop in August, while analysts expected a 0.1% slip. 

On a yearly basis, sales sharpened their decline to 3.4% from 2.6%, as analysts estimated a 2.6% drop. 

Federal Reserve Governor Richard Clarida said in earlier remarks that gradual increases to interest rates are appropriate, noting that increased savings and tax cuts constitute burdens on the economy, while adding that the monetary policy remains accommodative at the broadest definition.