Natural Gas Futures: Further retracements look contained

Traders scaled back their open interest positions in natural gas futures markets by just 161 contracts on Thursday after four consecutive daily builds. In the same line, volume went down by around 56.4K contracts, extending the erratic performance.

Natural gas could drop to $3.50

Thursday’s drop in prices of natural gas was amidst diminishing open interest and volume, hinting at the idea that extra decline appears to be losing momentum for the time being. Against this, the $3.50 level per MMBtu emerges as the next area of contention.