Natural gas drops from 10-month peak on US inventory build

2018-11-08 19:22:32 GMT (Economies.com)
Natural gas drops from 10-month peak on US inventory build

Natural gas futures fell off January 29 highs for the third straight session, as the dollar index rebounded from October 22 lows, following earlier data from China, the world's largest energy importer, and the US, which showed another inventory build for the 27th meeting in a row. 

 

As of 06:35 GMT, natural gas futures due in December fell 0.48% to $3.54 per million British thermal units away from ten-month highs, while the dollar index rose 0.29% to 96.28 away from two-month lows. 

 

Earlier Chinese data showed the trade surplus up to 234 billion yuan, or $34 billion, compared to 213 billion yuan in September, while analysts expected only 209 billion. 

 

Official Chinese customs data showed natural gas imports surged 25.6% in October y/y to 7.3 million tonnes, but still below September's 7.62 million levels. 

 

US Inventory Build 

 

The Energy Information Administration released its report on US natural gas inventories, showing a buildup of 65 billion cubic feet in the week ending November 2, adding to the 48 billion increase in the previous reading, while analysts expected a 56 billion build. 

 

Total stocks are now up to 3.208 trillion cubic feet from 3.143 trillion in the week ending October 26, making them below the total of the same period in 2017 at 3.788 trillion, while also below five-year averages at 3.829 trillion. 

 

Otherwise, the Federal Open Market Committee voted at the November 7-8 policy meeting to hold overnight interest rates unchanged between 2.0% and 2.25% as expected by analysts. 

 
 
 
  Symbol Last Change Chg.%
1.1338
0.0010
0.0861%
1.3016
0.0096
0.7469%
14.203
0.044
0.314%
56.282
-3.560
5.949%
66.28
0.10
0.15%
1213.075
3.605
0.298%
 
 
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