Natural gas prices rise over one percent despite inventory buildup

Natural gas futures rose over one percent in American trade as the dollar index fell according to their inverse relation, following earlier data from the U.S., the world's largest energy consumer, including the EIA inventory report, which showed a more-than-expected inventory buildup last week.

As of 07:34 GMT, natural gas futures due on May 16 rose 1.04% to $3.220 per million British thermal units from the opening of $3.187, with an intraday high at $3.243, and a low at $3.149, while the dollar index shed 0.22% to 100.56 from the opening of 100.78. 

The Energy Information Administration released its report on U.S. natural gas stocks, showing a buildup of 10 billion cubic feet in the week ending April 7, adding to a 2B buildup in the previous reading, and above expectations of a 5B rise. 

The report showed total inventories reaching 2.061 trillion cubic feet, compared to 2.051 trillion in the week ending March 31, which is lower than the total in the same period of 2016 at 2.477 trillion, while above the five-year average at 1.798 trillion. 

Additional U.S. data showed an unexpected drop in unemployment claims last week, while producer prices slipped in March as consumer confidence rose in April according to the University of Michigan's survey.