Natural Gas Futures: Recovery could be losing momentum

Considering advanced prints from CME Group for natural gas futures markets, open interest shrank by just 860 contracts on Tuesday after two daily builds in a row. Volume retreated by around 21.4K contracts and reversed the previous daily build.

Natural Gas faces initial resistance near $8.50

Prices of natural gas extended the bounce off last week’s lows amidst shrinking open interest and volume on Tuesday, which seems to undermine the ongoing recovery. That said, the commodity should meet the initial hurdle around the $8.50 mark per MMBtu, while the immediate contention is still seen around the $7.50 region.