Natural gas slides, shrugging off first US inventory drawdown in 7 months

Natural gas futures fell in American trade off January 2014 highs for the fourth session out of six, while the dollar index backed off January 2017 highs for another session, following earlier US data that showed a larger-than-expected inventory drawdown last week. 

As of 08:53 GMT, natural gas futures due in December swooned 1.99% to $4.43 per million British thermal units away from early 2014 highs, while the dollar index slipped 0.14% to 96.70 against a basket of major rivals.

US Inventory Drawdown 

The Energy Information Administration reported a deficit of 134 billion cubic feet in US natural gas inventories in the week ending November 16, compared to a build of 39 billion in the previous reading, while analysts expected a drawdown of 105 billion. 

Total stocks are now down to 3.113 trillion cubic feet from 3.247 trillion in the week ending November 9, making them below the total of the same period in 2017 at 3.733 trillion, while also below five-year averages at 3.823 trillion. 

US Labor, Housing, Goods Data 

Earlier US data showed durable goods orders fell 4.4% in October, missing estimates of a 2.2% drop, and compared to September's 0.7% increase. 

Core orders, excluding transportation, rose 0.1%, below estimates of 0.4%.. This report is negative for the greenback. 

US unemployment claims rose to 224 thousand in the week ending November 17 from 221 thousand in the previous reading, revised from 216K, missing estimates of 215K. 

Continuing claims rose 3 thousand in the week ending November 10 fell to 1.668 million, still far above estimates of 1.1653 million. 

US existing home sales rose 1.4% in October to an annualized 5.22 million units, compared to a 3.4% drop in September to 5.15 million, while analysts expected a 1% increase to 5.20 million. 

The US CB leading index, which combines several other economic indicators, rose 0.1% in October, compared to a 0.6% increase in September, and missing estimates of a 0.2% increase.  

The University of Michigan's consumer sentiment survey fell to 97.5 in the final reading from 98.3 in the preliminary one, missing estimates of 98.4, and compared to 98.6 in October.