Natural Gas Futures: Rally poised to extend further

According to flash data from CME Group for natural gas futures markets, open interest rose the most since June 30 on Thursday, now by more than 24K contracts. Volume followed suit and went up by around 304.2K contracts, almost doubling Wednesday’s reading and posting the largest single-day increase since May 17.

Natural Gas now targets $4.70

Prices of natural gas jumped more than 7% on Thursday, reaching new 2021 highs beyond $4.21 per MMBtu. The sharp move was accompanied by rising open interest and volume, indicative that further upside remains well on the cards in the short-term horizon. That said, the next target of note aligns at the December 2018 peak near $4.70.