Taking into account advanced prints from CME Group for natural gas futures markets, open interest shrank by just 860 contracts on Tuesday after two straight daily builds. Volume retreated by approximately 21.4 thousand contracts, reversing the previous day’s increase.
Natural gas faces initial resistance near $8.50
Prices natural gas extended the bounce from last week’s lows amid shrinking open interest and volume on Tuesday, which appears to be undermining the ongoing recovery. This means the commodity should meet the initial hurdle around the $8.50/MMBtu mark, while immediate contention is still evident around the $7.50 area.