Natural Gas Price Drops 2.5% On Supply Report

NEW YORK (AP) — The price of natural gas is down 2.5 percent after the government said supplies remain significantly higher than average levels for this time of year.

Natural gas futures on Thursday fell 7 cents to $2.58 per 1,000 cubic feet in New York.

A boom in North American shale drilling has filled underground storage facilities across the country. The Energy Information Administration says supplies are more than 40 percent higher than the five-year average.

Major natural gas producers recently cut back on production as prices linger around a 10-year low, but analysts say they’re not doing enough to reduce the glut.

Meanwhile, the price of benchmark oil rose 41 cents to $106.69 per barrel in New York.

Retail gasoline prices jumped 3 cents to a national average of $3.61 a gallon.