Natural Gas Futures: Scope for further retracements

In light of advanced prints for natural gas futures markets from CME Group, open interest went down for the second consecutive session on Thursday, this time by nearly 15K contracts. Volume, on the other direction, reversed the previous pullback and rose by around 86.3K contracts.

Natural Gas still risks further decline

Thursday’s uptick in prices of natural gas was against the backdrop of declining open interest, removing some strength from the move and opening the door to further pullbacks in the very near term. On the upside, the next target remains at the so far YTD highs near $3.370 per MMBtu (June 15).