Natural gas futures fell on Thursday amid concerns that demand will decline as the U.S. economy slows.
A U.S. government report released today showed that natural gas supplies for the remaining cold-weather months were enough, contributing to further decline of natural gas prices.
According to the U.S. Energy Department, stockpiles posted the highest drop ever when they dropped 274 billion cubic feet to 2.262 trillion cubic feet for the week that ended Jan. 25.
Gas for March delivery declined 3.6 cents, or 0.5 percent, to $8.009 per million British thermal units on the New York Mercantile Exchange.
EarthSat Energy Weather of Rockville, Maryland, said on Thursday that the Eastern Seaboard, including New York, will see above-average temperatures by Feb. 2.The U.S. economy was nearing a recession in the fourth quarter as home construction declined and the gross domestic product increased at an annual rate of 0.6 percent, below the 4.9 percent rate in the previous three months.
A slowing economy would trim demand for natural gas as commercial, industrial and power generation account for about 78 percent of U.S. gas consumption, said the Energy Department.