Natural Gas Futures: Further downside seems contained

Open interest in natural gas futures markets went down for the second consecutive session at the end of last week, this time by around 16.1K contracts in light of advanced readings from CME Group. Volume, instead, rose by nearly 39.7K contracts following two daily drops in a row.

Natural Gas remains well supported near $2.20/MMBtu

Prices of Natural Gas edged lower on Friday amidst shrinking open interest, adding to the view that a deeper retracement is not on the table for the time being. Looking at the broader picture, the late December lows in the $2.20 per MMTbu is unlikely to come into focus for the time being.