Natural gas futures fell for a third day in New York as forecasts showed temperatures will be cooler than normal in the U.S. South this week, reducing demand for the power-plant fuel to run air conditioners. Gas declined as much as 1.3 percent as forecasters including Commodity Weather Group LLC in Bethesda, Maryland, said temperatures will below normal through May 8. U.S. nuclear production rose for a second day in a rebound from the lowest levels in almost 12 years. The relative-strength index for gas futures stayed near a sell signal. “The weather is moderating and it’s taking some premiums out of the market,” said Carl Neill, an energy consultant at Risk Management Inc. in Atlanta. “We are in a normal shoulder period and the market is reacting accordingly.” Natural gas for June delivery dropped 4.4 cents, or 0.9 percent, to $4.626 per million British thermal units at 9:39 a.m. in on the New York Mercantile Exchange. Prices have dropped 1.5 percent this week after rising the previous three weeks. The relative-strength index fell below 70 for the first time in four days, according to data compiled by Bloomberg. Some traders see readings above 70 as sell signals and figures at 30 or below as buy indicators. Temperatures will be below normal in the East and South this week before rising above normal next week, according to Matt Rogers, president of Commodity Weather Group LLC. Warmer Weather The 6- to 10-day forecast calls for warmer-than-typical weather to spread from the Great Lakes to the U.S. Gulf Coast and parts of the Southwest, Rogers said. From May 9 to May 13, cold pockets will probably be confined to parts of the Pacific Northwest and sections of Montana and North Dakota. Power plants use 30 percent of the nation’s gas supplies according to the Energy Department. Residential consumers account for about 20 percent. U.S. nuclear-power output rose 2.1 percent from yesterday to 70,385 megawatts, or 69 percent of capacity, according to a Nuclear Regulatory Commission report and data compiled by Bloomberg. It fell to 68,667 megawatts on May 2, the lowest level since 1999. Nuclear plants produce 20 percent of U.S. electricity while natural gas powers 24 percent, according to the Energy Department. To contact the reporter on this story: Moming Zhou in New York at Mzhou29@bloomberg.net. To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net

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