Natural Gas Futures: Further downside on the cards

Open interest in natural gas futures prices dropped for the fifth consecutive session on Tuesday, this time by nearly 5K contracts as per advanced prints from CME Group. On the other hand, volume went up for the second straight session, now by around 82.8K contracts.

Natural Gas: Next support comes around $4.70

Prices of natural gas reversed two daily drops in a row and posted decent gains on Tuesday. The recovery, however, was in tandem with shrinking open interest, which somewhat rules out further gain and allows for the continuation of the leg lower at least in the very near term. That said, decent contention is expected to emerge around the $4.70 region per MMBtu.