Natural Gas Futures: Correction (long) overdue

According to advanced prints from CME Group for natural gas futures markets, open interest shrank by around 13.7K contracts on Thursday, the first drop after six consecutive daily builds. Volume went down by nearly 69K contracts, reversing two daily advances in a row.

Natural Gas risks a corrective downside

The rally in prices of natural gas remains everything but abated. Thursday’s move past the $5.00 mark per MMBtu was against the backdrop of shrinking open interest and volume, hinting at the idea that a probable correction is in the offing. The ongoing overbought condition of the commodity supports the latter.