Natural Gas Futures: A deeper pullback is not favoured

CME Group’s preliminary readings for natural gas futures markets noted open interest shrunk for the second session in a row on Thursday, now by around 4.6K contracts. Volume, instead, reversed the previous drop and went up by nearly 141K contracts.

Natural Gas still looks supported around $2.70/MMBtu

Prices of natural gas met support in the $2.70 neighbourhood per MMBtu on Thursday. The daily pullback was amidst shrinking open interest, which is indicative that the continuation of the leg lower seems unlikely in the very near-term at least.