US natural gas falls below $2 for first time in 3 years

US natural gas traded below $2 per million British thermal units yesterday for the first time since April 2012 as a glut of the power-plant and heating fuel expands toward a record.

Unusually warm weather for this time of year is threatening to crimp gas demand just as caverns and reservoirs are filling up with supplies.

The front-month contract fell as much as 5.5%, extending Monday’s 9.8% drop.