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CME Group’s preliminary figures for natural gas futures markets showed open interest went up for the second session in a row on Tuesday, this time by nearly 1.4K contracts. On the other hand, volume shrunk for the second straight day, now by nearly 32.9K contracts.

Natural Gas could drop to $2.55/MMBtu

Prices of natural gas extended the leg lower following last week’s brief tops beyond the key $3.00 mark per MMBtu. Tuesday’s downtick was accompanied by rising open interest, indicative that further retracement remains in the pipeline. Against this, a move to recent lows in the $2.55 area should not be ruled out in the near-term.