Natural gas futures extended their earlier losses after a U.S. government report showed a larger-than-expected build in natural gas inventories last week. The U.S. Energy Information Administration said that natural gas inventories added 74 billion cubic feet, higher than consensus estimates for a build of 69 billion cubic feet. With temperate weather in the coming weeks likely leading to tepid gas demand, market participants have turned their attention to high inventories. “It’s a classic case of oversupply,” said Jay Levine, president of Enerjay LLC. “Natural gas is being weighed down by a combination of supply and depressed enthusiasm because of the economic malaise we’re in.” Natural gas in U.S. storage for the week ended Sept. 24 stood at 3.414 trillion cubic feet, 6.3% above the five-year average, but 4.6% below 2009 levels. Nymex November gas futures recently trade -14c, or 3.5%, at $3.822/MMBtu.

Tags: EIA Natural gas storage, Natural gas inventories, natural gas statistics