Open interest in natural gas futures markets reversed the previous daily build and shrank by around 1.3K contracts on Tuesday according to preliminary readings from CME Group. In the same line, volume dropped markedly by around 127.7K contracts after three daily builds in a row.

Natural Gas: Further consolidation likely ahead of extra losses

Tuesday’s uptick in prices of the natural gas was amidst shrinking open interest and volume, hinting at the likelihood that further recovery appears not favoured in the very near term. The continuation of the current range bound theme seems on the cards in the near term ahead of a potential drop to the $2.00 zone per MMBtu.