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| Natural Gas Futures Indicate Bearish Outlook for Market Despite Recent Uptick |
Natural gas futures remain bearish, with open interest and volume both decreasing. CME Group's advanced prints show a decrease of around 6.1K contracts in open interest, and volume has declined for the third consecutive session by approximately 36.1K contracts. These figures suggest that a rebound in natural gas prices is unlikely in the near future.
Despite a slight increase in prices on Friday, natural gas prices are expected to continue on a gradual decline to the 2023 lows, which are in the sub-$2.00 mark per MMBtu. With the decreasing open interest and volume, the path of least resistance for natural gas futures appears to be down. This could have significant implications for the energy industry and the broader economy, as natural gas is a key source of energy for many countries around the world.
