Natural gas slides 2% after US inventory data

Natural gas futures fell in American trade off November 21 highs,  while the dollar index inched higher, following earlier data from the US, the world's largest energy consumer, which showed a smaller-than-expected drawdown in natural gas inventories last week. 

As of 06:58 GMT, natural gas futures due in January swooned 2.00% to $4.61 per million British thermal units away from week highs, while the dollar index rose 0.06% to 96.84. 

US Inventory Deficit 

The Energy Information Administration released its report on US natural gas storage, showing a deficit of 59 billion cubic feet in the week ending November 23, compared to a decline of 134 billion in the previous reading, while analysts expected a 76 billion decline. 

Total stocks are now down to 3.054 trillion cubic feet from 3.113 trillion in the week ending November 16, which is below the total of the same period in 2017 at 3.698 trillion, while also below five-year averages at 3.774 trillion. 

US Housing, Labor Data 

Earlier US data showed pending home sales fell 2.6% m/m in October, compared to a 0.7% increase in September, while analysts estimated a 0.8% increase. 

On a yearly basis, sales slid 4.6%, compared to a 3.3% drop in October, while analysts expected a 2.8% decline. 

US personal income rose 0.5% in October, beating estimates of 0.4% and improving above September's 0.2% increase. 

Personal spending rose 0.6% in October, beating forecasts of 0.4%, and improving upon September's 0.2% increase, which was revised from 0.4%. 

Unemployment claims for the week ending November 24 rose by 10 thousand to a total of 234 thousand, while continuing claims for the week ending November 17 rose by 50 thousand to 1.710 million.