Natural Gas Futures: Extra losses not likely near term

According to preliminary readings from CME Group for natural gas futures markets, open interest shrank by around 5.6K contracts on Tuesday following three consecutive daily builds. On the other hand, volume went up by around 35.7K contracts, reversing four daily drops in a row.

Natural Gas: Next on the upside comes $5.20

Tuesday’s downtick in prices of natural gas was in tandem with diminishing open interest, hinting at the idea that further retracements appear unlikely in the very near term. Occasional bullish attempts, in the meantime, keep targeting the monthly high around $5.20 per MMBtu for the time being.