Natural Gas Futures: A deeper pullback looks unlikely

In light of preliminary readings from CME Group for natural gas futures markets, traders scaled back their open interest positions by around 10.1K contracts at the beginning of the week, reaching the fourth consecutive daily drop. Volume, instead, extended the choppy performance and went up by around 20.1K contracts.

Natural Gas looks supported near $3.15

Monday’s negative price action in natural gas was amidst declining open interest, which is indicative that a move lower appears not favoured in the very near term. That said, a probable recovery now emerges on the cards with the immediate target at the YTD peaks near $3.40 per MMBtu (June 15).