Natural Gas Futures: Extra gains seems likely

Open interest in natural gas futures markets rose by 23.2K contracts on Thursday after two daily pullbacks in a row, in light of flash prints from CME Group. Volume also went up following the previous drop and rose by more than 109K contracts.

Natural Gas now looks to $3.40/MMBtu

Thursday strong advance in natural gas prices surpassed the critical $3.00 mark per MMBtu. The move was in tandem with rising open interest and volume and therefore allows for the continuation of the uptrend in the very near-term. Against this, the 2020 high near $3.40/MMBtu (October 30) now emerges on the horizon.