Natural Gas Futures: Further retracement on the cards

Considering advanced prints from CME Group for natural gas futures markets, open interest increased by around 18.2K contracts after several pullbacks in a row on Thursday. Volume followed suit and remained choppy after contracts rose by around 35.5K contracts, reversing the previous daily drop.

Natural Gas faces the next support near $2.50

Thursday’s decline in prices of natural gas was amidst rising open interest, which suggests that extra decline could be in the pipeline in the very near term. Against that, the commodity should face the next contention around the monthly lows near the $2.50 mark per MMBtu (July 17).