Natural gas futures extended their losses on Thursday following a higher-than-expected US supply build. The energy commodity has come under pressure after topping $3 as investors take profit and fundamentals fail to prop up prices. Can natural gas trigger another rally?

July natural gas futures tumbled $0.073, or 2.74%, to $2.595 per million British thermal units (Btu) at 14:43 GMT on Thursday on the New York Mercantile Exchange. Natural gas is poised for a weekly decline of more than 11%, although it is still up nearly 12%.

According to the US Energy Information Administration (EIA), domestic inventories of natural gas surged 84 billion cubic feet for the week ending May 24, up from 78 billion cubic feet in the previous week. This also topped the consensus estimate of 77 billion cubic feet.

Once again, most of the inventory builds were concentrated in the East (27 billion cubic feet) and the Midwest (24 billion cubic feet).

In total, US supplies of natural gas stand at 2.795 trillion cubic feet, up 380 billion cubic compared to the same time a year ago. They are also 586 billion cubic feet above the five-year average of 2.209 trillion cubic feet.

Shrinking output has been the chief catalyst for natural gas as daily production fell to 97.7 billion cubic feet in May, down from 98.2 billion cubic feet per day in April. But traders might have already penciled in the slowing production volumes.

“Natural gas prices pulled back after the incredible comeback,” said Phil Flynn, an energy strategist at The PRICE Futures Group, in an analyst note. “Long term the demand outlook for natural gas looks strong from the liquified natural gas front as well as power generation. In the United States we still must keep in mind that we’re heading into hurricane season and that could impact natural gas demand either positively or negatively, depending on when and if these storms hit and where they hit.”

In other energy commodities, July West Texas Intermediate (WTI) crude oil futures tumbled $0.54, or 0.68%, to $78.69 per barrel. July Brent crude futures shed $0.58, or 0.7%, to $82.85 a barrel. July gasoline futures erased $0.0179, or 0.73%, to $2.4426 a gallon. July heating oil futures dropped $0.0207, or 0.84%, to $2.4349 per gallon.