Natural gas climbs 2% as dollar declines

Natural gas futures rose nearly two percent in American trade to August 22 highs, while the dollar index hit July 9 lows, shrugging off earlier data from the US, the world's largest energy consumer, which showed yet another inventory build for the 21st week in a row. 

As of 07:33 GMT, natural gas futures due in October rose 1.75% to $2.96 per million British thermal units, marking four-week highs, while the dollar index shed 0.26% to 93.91, hitting ten-week lows. 

US Inventory Build 

The Energy Information Administration released its report on US natural gas stocks, showing a buildup of 86 billion cubic feet in the week ending September 14, up from 69 billion in the previous reading, while analysts expected an 81 billion increase. 

Total stocks rose 2.722 trillion cubic feet from 2.636 billion in the week ending September 7, which is below the total of the same period in 2017 at 3.394 trillion, while also below five-year averages at 3.308 trillion. 

US Labor, Housing Data

Other US data showed unemployment claims fell 3 thousand in the week ending September 15 to 201 thousand from 204 thousand, besting estimates of 210 thousand, while continuing claims fell to 1.645 million in the week ending September 8, beating estimates of 1.705 million. 

The Philly manufacturing index rose to 22.9 from 11.9, beating expectations of 17.5. 

US existing home sales were unchanged in August at an annualized 5.34 million units, compared to a 0.7% dip in July, while analysts expected a 0.5% increase to 5.37 million.