Natural Gas Futures: Recovery could be losing momentum

Traders scaled back their open interest positions for the fourth consecutive session on Thursday, this time by around 4K contracts, as per flash data from CME Group. On the flip side, volume reversed two daily drops in a row and went up sharply by around 142K contracts, the largest single day build since February 16.

Natural Gas still targets $2.90

Further gains in Natural Gas could face some headwinds in the very near-term, as Thursday’s positive move was on the back of shrinking open interest. However, the noticeable build in open interest could still lend some legs to the commodity. That said, the next target of note is seen at the $2.90 mark per MMBtu.