Natural gas prices fall nearly one percent after U.S. inventory buildup

Natural gas futures fell nearly one percent in American trade as the dollar index edged higher according to their inverse relation, which follows a spate of data from the U.S., including the EIA inventory report, which showed a buildup in natural gas stocks past expectations last week. 

As of 08:11 GMT, natural gas futures due on May 16 slid 0.78% to $3.160 per million British thermal units from the opening of $3.185, with an intraday low at $3.134, and a high at $3.219, while the dollar index rose 0.07% to 99.81 from the opening of 99.74. 

The Energy Information Administration released its report on U.S. natural gas storage, showing a buildup of 54 billion cubic feet in the week ending April 14, adding to the 10B rise in the previous reading, while analysts expected a 49B buildup. 

Total inventories now reached 2.115 trillion cubic feet, compared to 2.061 trillion in the week ending April 7, which is lower than the total in the same period of 2016 at 2.483 trillion, while higher than the five-year average at 1.833 trillion. 

Additional data showed U.S. unemployment claims rose past expectations last week, while the Philly manufacturing index fell more than expected in April, as the CB leading index rose more than expected in March.  

Finally, U.S. treasury secretary Steven Mnuchin spoke at the Institute of International Finance Policy Summit, in Washington DC, saying that most of the revenue lost from tax cuts will be offset by upbeat growth, expressing the treasury in the final stages of putting the basis for reforming the U.S. tax code.