Natural gas is under strong pressure as traders react to bearish weather forecasts.
WTI oil pulled back as traders monitored Ukraine peace talks.
Brent oil tested support at $60.50 - $61.00.
Natural Gas
Natural Gas 111225 Daily Chart
Natural gas suffered a strong sell-off as traders reacted to the EIA report. The report indicated that working gas in storage declined by -177 Bcf, compared to analyst forecast of -165 Bcf. Bearish weather forecasts put significant pressure on natural gas markets.
From the technical point of view, natural gas settled below the support at $4.40 – $4.45 and is trying to settle below the next support level at $4.15 – $4.20.
WTI Oil
WTI Oil 111225 Daily Chart
WTI oil pulled back despite the bullish revision of the IEA oil market forecast. Ukraine peace talks put material pressure on oil markets as bulls worry that Russian exports would increase in case the deal is reached.
A move below the $57.00 level will push WTI oil towards the support at $55.50 – $56.00.
Brent Oil
Brent Oil 111225 Daily Chart
Brent oil is under pressure as traders focus on geopolitical developments and worry about supply glut.
A successful test of the support at $60.50 – $61.00 will open the way to the test of the next support level at $56.50 – $57.00.
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Vladimir is an independent trader, with over 18 years of experience in the financial markets. His expertise spans a wide range of instruments like stocks, futures, forex, indices, and commodities, forecasting both long-term and short-term market movements.