Natural gas gains ground after US inventory data

Natural gas futures rose nearly one percent in American trade even as the dollar index scaled January 4 highs, following earlier data from the US, the world's largest energy consumer, including the EIA report that showed another inventory drawdown. 

As of 08:47 GMT, natural gas futures due in February rose 0.74% to $3.41 per million British thermal units, while the dollar index added 0.02% to 96.08, marking two-week highs. 

Earlier US data showed unemployment claims fell 3 thousand to a total of 213 thousand in the week ending January 12, while continuing claims for the week ending January 5 rose 18K to 1.737 million. 

The Philly Manufacturing Index rose to 17 from 9.4 in December, beating estimates of 9.7 easily. 

The Energy Information Administration reported a drawdown of 81 billion cubic feet in the week ending January 11 in US natural gas stocks, compared to a 91 billion drop in the previous reading, while analysts expected a 73 billion decline. 

Total stocks fell to 2.533 trillion cubic feet from 2.614 trillion in the week ending January 4, making them below the total of the same period in 2018 at 2.610 trillion, while also below five-year averages at 2.860 billion.