Natural gas prices tumble with growing supplies

Natural gas prices fell sharply today after the government said supplies expanded more than expected amid ongoing weak demand for oil and gas.

Meanwhile, fresh reports indicating the U.S. economy is getting stronger boosted oil prices above $85 a barrel.

Natural gas prices fell 8.5 percent after the Energy Department's Energy Information Administration said natural gas inventories held in underground storage in the lower 48 states grew by 83 billion cubic feet to about 1.912 trillion cubic feet for the week ended April 23.

Analysts expected an increase of 72 billion to 76 billion cubic feet, according to a survey by Platts, the energy information arm of McGraw-Hill Cos. The inventory level was 18.8 percent above the five-year average and 5.6 percent above last year's storage level.

Natural gas for June delivery fell 36.8 cents to settle at $3.980 per 1,000 cubic feet on the New York Mercantile Exchange.