Natural Gas Futures: Rebound looks likely near-term

Investors trimmed their open interest positions for the second session in a row on Wednesday, now by almost 3.6K contracts in light of advanced prints from CME Group. Volume followed suit and went down sharply by nearly 319K contracts, the largest single day drop since December 4.

Natural Gas shifts the attention to $3.00

Prices of natural gas corrected lower following the ephemeral test of the $3.00 neighbourhood on Tuesday. The move lower was in tandem with shrinking open interest and volume, removing some strength from a deeper pullback and instead indicating that a rebound could be in the cards. That said, the $3.00 mark per MMBtu remains the next target of significance.