Natural Gas Futures: A deeper pullback is not favoured

According to advanced figures for natural gas futures markets from CME Group, traders trimmed their open interest positions for the second session in a row on Friday, this time by nearly 10K contracts. Volume followed suit and shrank for the second straight session, now by around 154.5K contracts.

Natural gas faces support around $5.00

Prices of natural gas retreated further at the end of last week. The corrective downside from YTD highs, however, was against the backdrop of declining open interest and volume, hinting at the view that further losses look unlikely in the very near term at least. That said, the $5.00 mark per MMBtu remains as a key contention area for the time being.