Natural gas trades flat after US inventory buildup

Natural gas futures titled higher in American trade off July 13 lows, while the dollar index climbed off July 10 lows, following earlier data from the US, the world's largest energy consumer, including the EIA report that showed another inventory buildup for the 12th week in a row. 

As of 07:57 GMT, natural gas futures due on August 15 rose 0.04% to $2.78 per million British thermal units from the opening of $2.78, marking two-week highs, while the dollar index added 0.57% to 94.77 from the opening of 94.23. 

Disappointing US Data 

Earlier US data showed durable goods orders, which make up half the consumer spending in America, which in turn constitutes two thirds of GDP, rose 1.0% in June, compared to a 0.4% dip in May, while analysts expected a 3.0% increase. 

Core orders, excluding transportation items, rose 0.4%, compared to no-change in May, while also missing estimates of 0.5%. 

Unemployment claims rose 9 thousand to 217 thousand from 207 thousand, passing expectations of 215 thousand, while continuing claims fell 8 thousand in the week ending July 14 to 1.743 million from 1.753 million, above estimates of 1.733 million. 

The goods trade balance yielded a deficit of $68.3 billion in June, up from $64.8 billion in May, while analysts expected $67 billion. 

Whole sale inventories were flat in June, compared to a 0.6% increase in May, while analysts forecast a 0.5% increase. 

Another Buildup  

The Energy Information Administration released its report on US natural gas inventories, showing a buildup of 24 billion cubic feet in the week ending July 20, compared to a 46B buildup in the previous reading, while analysts expected an increase of 39 billion. 

Total stocks are now up to 2.273 trillion cubic feet from 2.249 trillion in the week ending July 13, which is below the total of the same period in 2017 at 2.978 trillion, while also below the five-year average at 2.830 trillion.