Natural gas hits two-week high after US inventory drawdown

Natural gas futures rose over one percent in American trade to March 14 highs, even as the dollar index rose to March 21 highs, following earlier data from the US, the world's largest energy consumer, including the EIA report that showed another inventory drawdown for the fifteenth week in a row. 

As of 07:58 GMT, natural gas futures due on May 15 rose 1.30% to $2.733 per million British thermal units from the opening of $2.698, while the dollar index inched up to 90.07 from the opening of 90.06, marking one-week highs. 

Earlier US data showed personal spending and income grew 0.2% and 0.4% respectively in February, while core personal spending slowed down to 0.2% as expected from 0.3%, and on a yearly basis, spending accelerated to 1.6% from 1.5% in line with forecasts. 

Unemployment claims fell 12 thousand in the week ending March 25 to 215 thousand from 227 thousand, missing expectations of 230K, while continuing claims in the week ending March 17 rose 35 thousand to 1.871 million from 1.836 million, missing expectations of 1.870 million. 

Chicago PMI slowed down sharply to 57.4 in March from 61.9 in February, missing expectations of 62.1. 

University of Michigan released its second and final reading for consumer sentiment, showing a dip to 101.4 in March from the preliminary reading of 102, missing expectations of 101.9, and compared to February 99.7. 

The Energy Information Administration released its report on US natural gas storage, showing another drawdown of 63 billion cubic feet om the week ending March 12, down from 86 billion in the previous reading, while analysts expected a 75M drop. 

Total stocks have now fallen to 1.383 trillion cubic feet from 1.446 trillion in the week ending March 16, which is below the total of the same period in 2017 at 2.055 trillion, while also below the five-year average at 1.729 trillion.