Natural gas futures fell the most in two months after a government report showed a bigger than  estimated rise in U.S. to buffer stock.

Supplies in storage gained 66 billion cubic feet in the week ended July 31 to 3.089 trillion cubic feet, the Energy Department said. Analysts forecast a gain of 61 billion. The total was a record for late July, based on weekly department data going back to 1994.

“We have a lot of supply and it really weighs on the market,” said Phil Flynn, vice president of research at PFGBest in Chicago. “The dollar is also a little firmer, so with the bearish storage report, natural gas is having a tough time hanging on.”

Natural gas for September delivery fell 28.8 cents, or 7.1 /cent, to $3.754 per million British thermal units at the 2:30 p.m. close of floor trading on the New York Mercantile Exchange, the biggest one day decline since June 3. Gas has dropped 33 /cent this year.

A stronger dollar makes commodities less attractive to some investors, prompting them to sell holdings of natural gas, oil and metals.

Stockpiles were 19 /cent higher than the 5 year average of  last week. The average supply rise  for the week over the past five years is 48 billion cubic feet, according to department data.

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