Natural gas prices rally two percent after less-than-expected inventory buildup

Natural gas prices rose nearly two percent in American trade, shrugging off the dollar's rise, which follows a spate of data from the U.S., the world's largest energy consumer, including the EIA report, which showed a less than expected U.S. inventory buildup. 

As of 07:16 GMT, natural gas futures due on May 16 rose 1.93% to $3.329 per million British thermal units from the opening of $3.266, with an intraday high at $3.337, and a low at $3.235, while the dollar index rose 0.24% to 100.71 from the opening of 100.47. 

The Energy Information Administration releases its report on U.S. natural gas stocks, showing a buildup of 2 billion cubic feet in the week ending March 31, compared to a 43B drawdown in the previous reading, and below expectations of a 10B buildup, after earlier data showed a steep drop in U.S. unemployment claims last week. 

Total inventories rose to 2.051 trillion cubic feet from 2.049 trillion in the week ending March 24, which is below the levels of the same period last year at 2.478 trillion, while above the five-year average at 1.786 trillion, with natural as futures facing profit-taking pressures ahead of the weekend.