Natural gas price slides with hefty US supply

The Associated Press  January 12, 2012, 11:30AM

By CHRIS KAHN, NEW YORK

The price of natural gas continued to drop Thursday after the government said U.S. supplies are well above normal for this time of year.

Natural gas prices fell 9 cents, or 3.1 percent, to $2.69 per 1,000 cubic feet in morning trading in New York. They've fallen by 13 percent in the past week as relatively mild winter weather cut heating demand. About half of U.S. homeowners use natural gas for heat.

Americans are using less at a time when energy companies are pumping more from fields around the country. Production is booming as rising crude oil prices encourage the industry to tap new oil and gas fields in North America. Oil and gas are often found in the same geological formations.

For more:

http://www.businessweek.com/ap/financialnews/D9S7GL7G4.htm

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