Natural Gas Retreats As Storage Build Exceeds Analyst Estimates
Natural gas is losing ground as traders focus on the Weekly Natural Gas Storage Report. The report showed that working gas in storage increased by +80 Bcf from the previous week, compared to analyst forecast of +75 Bcf.
At current levels, stocks are -147 Bcf less than last year and +38 Bcf above the five-year average for this time of the year.
Natural gas failed to settle above the support at $3.00 – $3.05 and pulled back towards the $2.90 level. in case natural gas settles below $2.90, it will head towards the support level at $2.80 – $2.83. RSI remains in the moderate territory, so there is plenty of room to gain momentum in the near term.
On the upside, natural gas needs to climb above the $3.03 level to have a chance to gain upside momentum in the near term. In this case, natural gas will head towards the $3.10 level. A move above $3.10 will open the way to the test of the resistance at $3.25 – $3.28.
WTI Oil Moves Higher As Netanyahu’s Bloc Gains Most Seats In Israel Election
WTI oil gains some ground as traders stay focused on the situation in the Middle East.
According to final results of election in Israel, Prime Minister Netanyahu’s bloc secured 53 seats, while the main opposition bloc got 48 seats. Netanyahu’s victory is bullish for oil markets as he is extremely hawkish on Iran.
Traders are trying to guess whether U.S. will restart the military operation against Iran after midterm elections. The market believes that the risk of strikes against Iran is high. However, bulls are not ready for big moves as any sign of serious negotiations between U.S. and Iran may lead to a sell-off.
From the technical point of view, WTI oil continues its attempts to settle above the resistance level at $100.50 – $101.00. In case WTI oil manages to stay above the $101.00 level, it will head towards the $104.00 level. A move above $104.00 will push WTI oil towards the next resistance at $106.00 – $106.50.
On the support side, WTI oil needs to settle back below the psychologically important $100.00 level to have a chance to gain downside momentum in the near term. In this case, WTI oil will head towards the support at $96.50 – $97.00.
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See all Natural Gas forecastsBrent Oil Tests The $115 Level Amid Rising Risks Of War In The Middle East
Brent oil remains stuck near the resistance level at $114.50 – $115.00 as traders wait for news from the Middle East. Some reports indicate that U.S. is ready to strike Iran after midterm elections, but it’s impossible to verify whether such reports are based on true knowledge.
If Brent oil settles above the $115.00 level, it will head towards the next resistance level, which is located in the $119.50 – $120.00 range. A move above the $120.00 level will indicate that the market has started to price in a major war in the Middle East.
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