Natural Gas Futures: Room for a rebound near-term

In light of advanced figures from CME Group for Natural Gas futures markets, open interest increased for the third session in a row on Wednesday, this time by nearly 6.6K contracts. On the other hand, volume reversed two consecutive daily pullbacks and went up by almost 17.1K contracts.

Natural Gas seen returning to the $2.50 level (and above)

Natural Gas prices are struggling to extend the corrective downside on Thursday following two daily drops, including the rejection from new 2020 peaks near $2.56 per MMBtu on Wednesday. Shrinking open interest amidst the recent negative price action supports the idea that a deeper/persistent retracement appears unlikely, favouring instead the resumption of the recent upside.