Natural Gas Futures: Extra decline on the cards

Open interest in natural gas futures markets increased for the third session in a row on Tuesday, now by around 9.1K contracts according to advanced prints from CME Group. In the same line, volume partially reversed the previous drop and went up by around 81.5K contracts.

Natural Gas: Next on the downside comes $7.837

Tuesday’s strong pullback in prices of natural gas was in tandem with rising open interest and volume, exposing further correction in the very near term. That said, the commodity now risks a decline to the $7.40 region per MMBtu in the short-term horizon (May 20 low).