Natural Gas Futures: Scope for further corrective downside

Open interest in natural gas futures markets shrank for the third session in a row on Wednesday, this time by more than 1K contracts considering advanced prints from CME Group. Volume followed suit and went down by more than 116K contracts.

Natural Gas remains capped by $10.00 so far

Prices of natural gas recorded decent gains on Wednesday amidst diminishing open interest and volume and suggest that extra upside appear unlikely for the time being. in the meantime, further upside in the commodity seem limited by the key $10.00 mark per MMBtu.