Key Insights
- Natural gas rebounds on profit-taking and favorable weather forecasts.
- WTI oil moves higher as EU may soon introduce additional sanctions on Russian oil.
- The encouraging OPEC report provides significant support to oil markets.
Natural Gas
Natural gas is moving higher as weather forecasts trend colder. Profit-taking may have served as a material catalyst for today’s move as natural gas has previously declined from $3.60 towards $3.00 without any attempt to rebound.
At this point, the rebound looks technical, although natural gas may have a good chance to gain additional upside momentum in case weather forecasts point to higher demand for natural gas.
WTI Oil
WTI oil is moving higher amid reports that EU will soon reveal another sanctions package on Russia, which may include sanctions on Russian oil.
In case WTI oil stays above the $77.50 level, it will head towards the next resistance, which is located in the $80.50 – $82.00 range.
Brent Oil
Brent oil gains ground as the rebound continues. In addition to potential sanctions on Russia, traders react to the bullish OPEC report, which showed that demand for oil remained strong.
A move above the $83.00 level will open the way to the test of the next resistance at $84.00 – $85.30.
For a look at all of today’s economic events, check out our economic calendar.