Natural Gas Futures: A near-term drop looks likely

Considering advanced figures from CME Group for natural gas futures markets, open interest extended further the downward move and shrank by around 20.5K contracts on Thursday. Volume followed suit and went down for the second session in a row, this time by nearly 30K contracts.

Natural Gas: Upside remains capped near $2.70

Prices of natural gas added to the weekly recovery on Thursday. The daily uptick, however, was in tandem with shrinking open interest and volume and is suggestive that a probable corrective move could be in the offing in the very near term. In the meantime, bullish attempts appear so far capped by the $2.70 region per MMBtu.