Natural gas futures rose nearly two percent in American trade away from May 7 lows, even as the dollar index hit July 14, 2017 highs, following earlier data from the US, the world's largest energy consumer, including the EIA report that showed a lower-than-expected inventory buildup.
As of 07:50 GMT, natural gas futures due on August 15 rose 1.78% to $2.77 per million British thermal units from the opening of $2.72, rebounding from ten-week lows, while the dollar index rose 0.14% to 95.22 from the opening of 95.08, marking year highs.
Stellar US Employment Data
Earlier US data showed unemployment claims fell 8 thousand to 207 thousand from 215K, beating expectations of 220K, while continuing claims for the week ending July 7 rose 8 thousand to 1.751 million from 1.743 million, missing estimates of 1.729 million.
The Philly Fed Manufacturing Index rose to 25.7 in July from 19.9 in June, beating estimates of 21.6, while the CB leading index rose 0.5% in June, beating estimates of 0.4%, and compared to May's no-change.
Inventory Report
The Energy Information Administration released its report on US natural gas inventories, showing a buildup of 48 billion cubic feet in the week ending July 13, adding to a 51B buildup in the previous reading, while analysts expected a 58B increase.
Total stocks are now up to 2.249 trillion from 2.203 trillion in the week ending July 6, which is below the total of the same period in 2017 at 2.959 trillion, while also below the five-year average at 2.784 trillion.