Natural gas futures soar over 3% on upbeat inventory data

Natural gas futures rallied over three percent as the dollar index declined, following earlier data from the US, the world's largest energy consumer, including the EIA report that showed a smaller-than-expected inventory buildup last week. 

As of 08:04 GMT, natural gas futures due on September 15 rose 3.36% to $2.980 per million British thermal units from the opening of $2.877, with an intraday high at $2.995, and a low at $2.872, while the dollar index shed 0.16% to 93.40 from the opening of 93.55. 

Earlier US data showed producer prices shrank unexpectedly in July, as core prices also fell, while yearly readings for both slowed down unexpectedly last month. 

Similarly, unemployment claims for the week ending august 5 rose to 244 thousand from 241K, above expectations of 240K, while continuing claims for the week ending July 29 fell 16 thousand to 1.951 million from 1.967M, below expectations of 1.96M.  

More pertinently, the Energy Information Administration released its report on US natural gas stocks, showing a buildup of 28 billion cubic feet in the week ending August 4, adding to the 20B increase in the previous reading, while analysts expected a 38B rise. 

Total stocks now reached 3.038 trillion cubic feet, up from 3.010 trillion in the week ending July 28, which is below the total of the same period in 2016 at 3.313 trillion, while above the five-year average of 2.977 trillion.