Natural Gas Futures: Scope for extra recovery

In light of preliminary figures from CME Group for natural gas futures markets, traders scaled back their open interest positions by around 2.8K contracts on Thursday, reversing the previous small build. On the other hand, volume keeps the erratic performance intact and rose by around 121.7K contracts.

Natural Gas faces immediate hurdle at $4.00

Thursday’s doji-like session in natural gas ended with small gains and seems to mark the end of the corrective phase triggered following 2021 peaks around $4.20 (August 4/5). The downtick was accompanied by diminishing open interest, supporting further a potential rebound in the very near term. Against this, the initial hurdle of relevance comes in around the $4.00 mark per MMBtu ahead of $4.20.