Natural Gas Tests Resistance At $2.75 – $2.80
Natural gas gains ground as traders focus on the EIA Weekly Natural Gas Storage Report. The report indicated that working gas in storage increased by +28 Bcf from the previous week, compared to analyst forecast of +35 Bcf. Lower-than-expected build provided support to natural gas markets.
At current levels, stocks are -32 Bcf less than last year and +185 Bcf above the five-year average for this time of the year.
Currently, natural gas is trying to settle above the resistance level at $2.75 – $2.80. In case this attempt is successful, natural gas will move towards the next resistance level, which is located in the $3.00 – $3.05 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term .
On the support side, a move below the $2.70 level will open the way to the test of the support at $2.50 – $2.55.
WTI Oil Retreats As Traders Take Profits After The Strong Rebound
WTI oil pulls back as traders react to recent strikes on Iran. U.S. said that its military forces hit dozens of targets in the country. The strikes were made to degrade Iran’s ability to target vessels in the Strait of Hormuz.
It should be noted that U.S. has tried to reduce Iran’s ability to control the Strait of Hormuz for months since the beginning of the military operation in February, but these attempts yielded no serious results.
That said, recent reports indicate that oil has started flowing again through the Strait of Hormuz, although at a low pace.
Yesterday, two LNG vessels were hit in Egyptian waters as the conflict started to spread across the region. This incident raised worries that the situation would get completely out of control. At this point, it is not clear who attacked the vessels.
From the technical point of view, WTI oil failed to settle above the resistance level at $85.50 – $86.00 and pulled back towards the $84.00 level. In case WTI oil settles below $84.00, it will head towards the nearest support, which is located in the $81.50 – $82.00 range.
On the upside, a successful test of the resistance at $85.50 – $86.00 will push WTI oil towards the next resistance level at $90.50 – $91.00.
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See all Natural Gas forecastsBrent Oil Pulled Back Below The $90.00 Level
Brent oil tested new highs but lost momentum and pulled back as traders have started to take profits off the table after the strong rebound. U.S. dollar’s pullback and falling Treasury yields did not provide support to oil markets today as traders remained focused on geopolitical developments.
Currently, Brent oil is trying to settle below the $89.00 level. In case this attempt is successful, Brent oil will move towards the nearest support, which is located in the $86.50 – $87.00 range.
On the upside, a move above the $91.00 level will push Brent oil towards the resistance at $95.50 – $96.00.
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