Natural Gas Futures: Further downside looks out of favour

Open interest in natural gas futures markets shrunk for the second session in a row on Tuesday, this time by nearly 9K contracts in light of advanced figures from CME Group. Volume, in the same line, extended the erratic activity and decreased by almost 148K contracts.

Natural Gas remains supported around $2.40/MMBtu

Prices of natural gas tested and bounced off new lows in the $2.40 level per MMTBu on Tuesday amidst diminishing open interest and volume. That said, further downside looks unlikely in the very near-term at least, leaving the $2.40 area as a strong support.