Natural gas scales two-week high as dollar slides

Natural gas futures rose nearly three in American trade to April 27 highs, as the dollar index fell off December 22 highs, following earlier data from China, the world's largest energy importer, and the US, the biggest energy consumer, including the EIA report that showed another inventory buildup. 

As of 07:58 GMT, natural gas futures due on June 15 rose 2.63% to $2.809 per million British thermal units from the opening of $2.737, while the dollar index fell 0.41% to 92.66 from the opening of 93.04. 

China's producer prices rose 3.4% in April as expected, up from 3.1%, while consumer prices rose 1.8% y/y, compared to 2.1% in the previous reading, and missing expectations of 1.9%. 

Earlier US data showed consumer prices rose 0.2% in April, compared to a 0.1% m/m dip in March, and missing forecasts of a 0.3% rise, while core prices rose 0.1%, down from 0.2% in March. 

On a yearly basis, consumer prices accelerated to 2.5% as expected from 2.4% in March, while core prices steadied at 2.1%. 

Unemployment claims steadied at 211 thousand in the week ending May 5, compared to expectations of 219K, while continuing claims rose 30 thousand in the week ending April 25 to 1.790 million, below forecasts of 1.80 million. 

The Energy Information Administration released its report on natural gas inventories, showing a buildup of 89 billion cubic feet in the week ending May 4, compared to a 62B increase in the previous reading, while analysts expected an 81B buildup. 

Total inventories rose to 1.432 trillion cubic feet from 1.343 trillion in the week ending April 27, which is below the total of the same period in 2017 at 2.295 trillion, while also below the five-year average at 1.952 trillion.