Previous forecasts of unseasonably hot weather are no longer in the picture, and consequently natural gas futures fell for the first time in five days in response to the new forecast of cooler weather than originally expected.
That will reduce expected natural gas demand for electricity it powers, especially in the Northeast and Midwest.
The revision in the weather forecast calls for weather to be a minimum normal levels, with a good chance of dropping below normal temperatures.
Natural gas prices had soared 16 percent on the previous forecasts of much hotter weather.
July delivery of natural gas dropped 2.2 percent or 10.8 cents to $4.808 per million British thermal units on the New York Mercantile Exchange.
Even with supply outpacing demand for natural gas, prices since last year have increased by 29 percent, but most don't believe that is sustainable with so much natural gas available in the United States.
Natural gas production in the U.S. for 2010 was upwardly revised by the Energy Department’s Short-Term Energy Outlook by 0.8 percent to 61.22 billion cubic feet a day, up from the previous 60.75 projections in May.
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