Open interest in natural gas dropped for the third session in a row on Tuesday, this time by nearly 4K contracts, as per advanced figures from CME Group. In the same direction, volume went down for the second straight session, now by almost 60K contracts.

Natural Gas looks supported around $4.70

Natural gas prices managed to partially reverse the recent downtrend on Tuesday. The daily advance, however, was amidst diminishing open interest and volume, supporting the view that extra pullbacks remain on the cards in the very near term. Against that, the $4.70 area emerges as the next contention area.