Natural gas futures declined for the first time in three days in New York on speculation that rising supplies will exceed demand for the fuel.
Gas futures dropped as much as 1.3 percent on predictions of higher output after Baker Hughes Inc. said April 29 that the number of gas rigs drilling in the U.S. rose by four to 882 last week, the first increase in four weeks.
“The gas rig count is growing at a very healthy pace,” said Cameron Horwitz, an analyst at Canaccord Genuity in Houston. “Traders are hesitant to push prices higher without a turnaround in the market’s fundamentals.”
Natural gas for June delivery fell 3.6 cents, or 0.8 percent, to $4.662 per million British thermal units at 9:07 a.m. on the New York Mercantile Exchange. The futures have gained 5.8 percent this year.
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