Natural Gas Futures: Probable pullbacks near-term

Open interest in natural gas futures markets rose nearly 1.3K contracts on Tuesday following three consecutive daily drops according to preliminary figures from CME Group. In the same direction, volume advanced for the third consecutive day, this time by around 117.3K contracts.

Natural Gas still targets $3.00/MMBtu

Tuesday’s test of the $2.90 region in natural gas prices and the subsequent pullback was on the back of increasing open interest, leaving the door open to a potential correction lower in the very near-term. In the longer run, the commodity remains focused on the key barrier at $3.00 per MMBtu.