Natural gas futures fell from the highest price in more than 10 months on concern production will be more than enough to meet summer power demand for air conditioning. Gas declined for the first time in three days as a government report yesterday showed gas output this year will be 4.5 percent higher than in 2010. Prices have increased 2.5 percent this month as forecasts showed above-normal temperatures in the U.S. East, Midwest and South. “Gas is at the top of the current trading range,” said James Williams, an economist at WTRG Economics, an energy research firm in London, Arkansas. “It will be difficult to hit $5 with rising production.” Natural gas for July delivery fell 5 cents, or 1 percent, to $4.781 per million British thermal units at 9:06 a.m. on the New York Mercantile Exchange. It settled at $4.831 yesterday, the highest price since July 30, 2010. 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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