Natural gas plumbs week low on US inventory buildup

Natural gas futures fell nearly one percent in American trade off June 28 highs, as the dollar index traded mostly flat but still near June 2017 highs, following earlier data from the US, the world's largest energy consumer, which showed another inventory buildup for the 15th week in a row. 

As of 07:53 GMT, natural gas September futures fell nearly one percent to $2.91 per million British thermal units, marking August 8 lows, while the dollar index inched down 0.05% to 96.65 against a basket of major rivals, while still near 14-month highs hit recently. 

Another Week, Another Build

The Energy Information Administration released its report on US natural gas stocks, showing a buildup of 33 billion cubic feet in the week ending August 19, adding to a 46 billion increase in the previous reading, while analysts expected a 30 billion addition. 

Total stocks are now up to 2.387 trillion cubic feet from 2.354 trillion in the week ending August 3, making it below the total of the same period in 2017 at 3.074 trillion, while also below the five-year average at 2.982 trillion. 

US Housing, Labor Data 

Earlier US data showed housing starts rose 1.5% to an annualized 1.311 million units in July, edging out estimates of a 1.4% increase to 1.310 million. 

Building permits rose 0.9% last month to an annualized 1.168 million units, compared to a 12.9% slump in June to 1.158 million, while missing expectations of a 7.4% increase to 1.260 million. 

An index tracking the manufacturing sector in Philadelphia fell to 11.9 from 25.7 in July, missing estimates of 21.9.  

US unemployment claims fell a thousand to 212 thousand in the week ending August 11, compared to 214 thousand in the previous reading, while analysts expected 215 thousand. 

Continuing claims fell 39 thousand in the week ending August 4 to 1.721 million from 1.760 million, beating estimates of 1.740 million. 

Otherwise, the Wall Street Journal reported that US and Chinese officials are meeting for new trade negotiations on August 22-23 in an attempt to prevent a developing trade war between the world's two largest economies.