Natural gas scales four-month high after US inventory data

Natural gas futures rose over two percent to early February highs, as the dollar index fell off November 7 peak, following earlier data from China, the world's largest energy importer, and the US, including the EIA inventory report. 

As of 07:58 GMT, natural gas futures due on July 15 rose 2.36% to $2.95 per million British thermal units from the opening of $2.88, while the dollar index shed 0.08% to 93.99 from the opening of 94.07. 

US Data

Earlier US data showed unemployment claims fell 13 thousand to 221 thousand from 234 thousand, as analysts expected 228K, while continuing claims fell 16 thousand in the week ending May 19 to 1.726 million from 1.742 million, as analysts expected 1.733 million. 

Personal spending rose 0.6% in April, up from 0.5% in March, and beating forecasts of 0.4%, while personal income rose 0.3% as expected from 0.2%. 

Core personal spending rose 0.2% m/m, beating forecasts of 0.1%, while steadying up at 1.8% y/y in line with forecasts. 

Chicago PMI rose to 62.7 in May from 57.6 in April, beating forecasts of 58.2, while  pending home sales fell 1.3% m/m in April, compared to a 0.6% rise, revised from 0.4% in March, missing expectations of a 0.4% rise, while rising 0.4% y/y, compared to a 4.3% drop in the previous yearly reading. 

 Inventory Buildup Below Estimates 

The Energy Information Administration released its report on US natural gas inventories, showing a buildup of 96 billion cubic feet in the week ending May 25, compared to a 91 billion buildup in the previous reading, while analysts expected a 100 billion increase. 

Total stocks now reached 1.725 trillion cubic feet from 1.629 trillion in the week ending May 18, which is below the total of the same period in 2017 at 2.513 trillion, while also below the five-year average at 2.225 trillion.