Natural Gas Futures: Further downside not ruled out

Open interest in natural gas futures markets extended its uptrend on Tuesday, now by around 2.4K contracts according to preliminary readings from CME Group. Volume, on the opposite direction, resumed the decline and went down by around 38.7K contracts.

Natural Gas appears underpinned by the $3.00 region

Tuesday’s marked decline in prices of natural gas was on the back of the continuation of the upward trend in open interest, which suggests that further weakness remains in store for the time being. That said, there is an important contention zone around the $3.00 mark per MMBtu.