NEW YORK - The price of natural gas dropped yesterday for the first time in a week after the government said US supplies are still well above what is normal for this time of year.

A report from the Energy Information Administration showed the United States had 3.1 trillion cubic feet of natural gas in storage - a level that is 21.4 percent higher than the five-year average.

Natural gas futures fell 12 cents, or 4.5 percent, to end at $2.6050 per 1,000 cubic feet in New York.

The decline is good news for many Americans. Natural gas is used for heating in more than half of US homes and many utilities also burn natural gas to generate electricity. So falling prices should eventually mean lower bills for many consumers.

The price of natural gas had rebounded by about 17 percent from a 10-year low over the past few days.

US natural gas supplies have grown over the past few years as companies use new techniques to tap vast deposits of petroleum-rich shale. Barring any unseasonable swings in the weather, natural gas companies likely will trim production by another 2 billion cubic feet per day this year, one analyst said.