Natural Gas Futures: Near-term rebound in the offing

Open interest in natural gas futures markets shrank for the second session in a row on Wednesday, this time by around 2.3K contracts according to preliminary readings from CME Group. Volume followed suit and dropped by nearly 111K contracts, resuming the recent downtrend.

Natural Gas remains capped by $3.00

Prices of natural gas extended the marked weekly pullback on Wednesday amidst shrinking open interest and volume, which is indicative that extra losses seem unlikely and opening the door to a potential short-term rebound instead. On the upside, the commodity remains capped by the key $3.00 region per MMBtu.