By Reg Curren
Dec. 4 (Bloomberg) -- Natural gas futures in New York fell after a government report showed a smaller-than-forecast U.S. supply decline.
Stockpiles dropped 64 billion cubic feet in the week ended Nov. 28 to 3.358 trillion cubic feet, the U.S. Energy Department said. Analysts anticipated a drop of 67 billion cubic feet.
“No one is willing to step into the market right now,” said Michael Rose, a director of trading at Angus Jackson Inc. in Fort Lauderdale, Florida. “When there’s a miss on the number, people get out. The fear of losing money right now is a lot greater than the anticipation of making money, and that’s especially true in energy.”
Natural gas for January delivery fell 20.8 cents, or 3.3 percent, to $6.139 per million British thermal units at 11:05 a.m. on the New York Mercantile Exchange. Gas was trading at $6.356 before the report was released at 10:35 a.m.
A drop in gas futures, which have lost more than half their value since early July, comes as production rose and demand weakened from a slowing U.S. economy, according to George Hopley, an analyst at Barclays Capital in New York.
To contact the reporter on this story: Reg Curren in Calgary at rcurren@bloomberg.net
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