Open interest in Natural Gas futures markets rose for the second session in a row on Wednesday, this time by around 5.5K contracts, in light of advanced prints from CME Group. In the same direction, volume went up by more than 12K contracts and reversed at the same time the previous drop.
Natural Gas still targets the $2.50 area
The ongoing leg lower in prices of Natural Gas carries the potential to extend further in the very near-term. This view is supported by Wednesday’s higher open interest and volume. That said, the November’s low near $2.50 per MMBtu emerges as the next support of relevance.