CME Group’s flash data for natural gas futures markets noted traders reduced their open interest positions for yet another session on Wednesday, now by around 9.6K contracts. Volume followed suit and dropped by nearly 53K contracts, partially reversing the previous daily build.

Natural Gas: Further consolidation appears on the cards

Wednesday’s negative price action in natural gas prices was on the back of shrinking open interest and volume, which hints at the idea that a near-term rebound appears on the cards with the immediate target initially around the $2.80 mark per MMBtu.