Friday’s third consecutive drop in prices of natural gas was accompanied by rising open interest, which is indicative that further weakness could be in store for the commodity in the very near term.
Considering advanced prints from CME Group for natural gas futures markets, open interest increased by around 2.8K contracts after two consecutive daily pullbacks on Friday. On the other hand, volume shrank for the fourth straight session, this time by around 11.2K contracts.
Natural Gas: Another visit to $2.00 should not be ruled out
Friday’s third consecutive drop in prices of natural gas was accompanied by rising open interest, which is indicative that further weakness could be in store for the commodity in the very near term. Against that, a potential revisit to the $2.00 region per MMBtu in the near term should not be disregarded just yet.
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