Natural Gas Futures: Extra upside limited

Open interest in Natural Gas futures markets reversed the previous daily build and shrunk by around 6.6K contracts on Tuesday, as per preliminary readings from CME Group. Volume, instead, rose for the second session in a row, now by around 125.8K contracts.

Natural Gas now looks to $3.00

Tuesday’s sharp increase in Natural Gas prices was on the back of shrinking open interest, leaving the prospects of further gains somewhat curtailed. In addition, the commodity is entering overbought territory, which could also prompt prices to correct lower. The next target of relevance on the upside emerges at the key $3.00 mark per MMBtu in the short-term.