Dow Jones
Futures Drop Amid Profit-Taking After Sharp Rally

Wednesday, May 02, 2012

Natural gas futures slipped for the first time in three sessions as traders take profits off the table following a sharp rally spurred by cooler weather and production cuts.

Natural gas for June delivery recently fell 2.5 cents, or 1.1%, to $2.346 a million British thermal units on the New York Mercantile Exchange.

Some producers, however, have signaled that they are finally curbing the relentless boom in production, which has flooded the market with gas from so-called shale formations. Exxon Mobil (XOM) said last week it reduced U.S. gas output during the first quarter compared to the final three months of the year. Research firm Bentek said production has essentially flat-lined since last fall.

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