Natural gas retreats, shrugging off US inventory drawdown

Natural gas futures gave up ground in American trade as the dollar index backed off June 2017 highs, following earlier data from the US, the world's largest energy consumer, including the EIA's inventory report. 

As of 08:55 GMT, natural gas futures due in January shed 0.78% to $3.703 per million British thermal units, while the dollar index fell 0.67% to 96.33 to November 20 lows. 

US Inventories 

The Energy Information Administration reported a deficit of 141 billion cubic feet in the week ending December 14 in US natural gas storage, compared to a 77 billion deficit in the previous week, while missing estimates of a 141 billion decline. 

Total stocks are now down to 2.773 trillion cubic feet from 2.914 trillion, which is below the total of the same period in 2017 at 3.470 trillion, while also below five-year averages at 3.493 trillion. 

Earlier US data showed unemployment claims for the week ending December 15 up 12 thousand to 214  thousand, while continuing claims for the week ending December 8 rose 27 thousand to 1.688 million. 

The Philly Manufacturing Index rose to 9.4 from 12.9 in November, while the CB leading index rose 0.2%, compared to a 0.3% drop in October.

The Federal Open Market Committee voted to hike interest rates at the December 18-19 meeting by 25 basis points for the fourth time this year to below 2.50% as expected by analysts, while carrying on the process of reselling government bonds and mortgage securities by a $50 billion a month pace.