Natural gas falls after US inventory data

Natural gas futures fell over one percent in American trade away from June 18 highs, while the dollar index traded mostly flat near July 14, 2017 highs, following earlier data from the US, the world's largest economy, including the EIA report that showed another inventory buildup for the eighth week in a row.

As of 07:56 GMT, natural gas futures due on August 15 slid 1.21% to $2.94 per million British thermal units from the opening of $2.98, while the dollar index inched up 0.04% to 95.33 from the opening of 95.29, marking year highs. 

Disappointing US Data 

Earlier US data showed the final reading for first-quarter GDP growth down to 2.0% from 2.2% in the second reading and 2.9% in the fourth quarter of 2017, while GDP prices accelerated to 2.2% from 1.9% in the second reading and 2.3% in the fourth quarter of 2017. 

US unemployment claims rose 9 thousand to 227 thousand from 218 thousand, above forecasts of 220K, while continuing claims for the week ending June 16 fell 21 thousand to 1.705 million from 1.7426 million, below forecasts of 1.718 million.

 US Inventory Buildup 

The Energy Information Administration released its report on US natural gas inventories, showing a buildup of 66 billion cubic feet in the week ending June 22, adding to the 91B buildup in the previous reading, while analysts expected a 73B increase. 

Total inventories now rose to 2.074 trillion cubic feet from 2.008 trillion in the week ending June 15, which is below the total in the same period of 2017 at 2.809 trillion, while also below the five-year average at 2.575 trillion.