Natural Gas Futures: Further losses look out of favour

Traders scaled back their open interest positions in Natural Gas futures markets by around 3.4K contracts on Tuesday in light of advanced prints from CME Group, recording the third consecutive drop. Volume, on the other hand, increased for the second straight session, now by around 4.8K contracts.

Natural Gas remains supported by $2.40/MMBtu

Tuesday’s downtick in prices of Natural Gas was accompanied by shrinking open interest, keeping extra losses somewhat contained and with the 200-day SMA around $2.46 per MMBtu holding the downside for the time being. This area of contention is also reinforced by the YTD lows in the $2.40 mark.