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Open interest in Natural Gas futures markets shrunk by around 5.2K contracts on Wednesday according to advanced readings from CME Group. In the same line, volume prolonged the choppy performance and went down sharply by around 147.5K contracts.

Natural Gas still targets $2.50/MMBtu

The sharp upside momentum in prices of Natural Gas remains well and sound. However, diminishing open interest and volume amidst the recent uptick add to the idea that a correction lower could be in the offing. This view is also reinforced by prices navigating the overbought territory. On the upside, the key target remains at the 2020 peaks in the $2.50 region per MMBtu.