Natural Gas Futures: Further gains seem unlikely

CME Group’s flash data for natural gas futures markets noted traders scaled back their open interest positions for the fourth consecutive session on Tuesday, this time by around 27.3K contracts. Volume followed suit and dropped by around 48.5K contracts.

Natural Gas faces next hurdle around $2.90

Prices of natural gas extended the recovery on Tuesday. However, the uptick was accompanied by shrinking open interest and volume and exposes some correction in the short-term horizon. In the meantime, the initial up-barrier remains at the June high near the $2.90 (June 28) mark per MMBtu.