Natural Gas Is Stuck Near Support At $3.00 – $3.03
Natural gas settled near the $3.00 level as traders switched from November contract to December contract.
Traders also focused on the situation in European natural gas markets. Prices in Europe are rising as storage levels are at record lows. Problems in Europe will boost demand for U.S. LNG and may provide some support to the domestic market.
In case natural gas manages to settle above the $3.03 level, it will head towards the resistance level at $3.25 – $3.28. A successful test of this level will open the way to the test of the next resistance at $3.55 – $3.57.
On the support side, a move below the $3.00 level will push natural gas towards the $2.80 level. RSI is close to the oversold territory but there is enough room to gain additional momentum in the near term.
WTI Oil Tests The $100 Level
WTI oil pulls back as traders focus on efforts to restart negotiations between U.S. and Iran. Saudi Arabia, which is fighting against Iran-backed Houthis, attempts to restart the peace process in the region. Pakistan and Turkey have joined the effort, sending officials for talks in Tehran.
Traders also focus on the surprising decision of Finland and Norway to have a phone call with Russia’s President Putin. Finland’s Stubb and Norway’s Store discussed the potential Russia – Ukraine negotiations.
According to recent reports, Saudi Aramco offered additonal crude to European refiners, a sign indicating that Saudi Arabia has managed to restore its export capacity despite problems in the Strait of Hormuz and the attack on the East-West pipeline.
WTI oil failed to settle above the resistance at $100.50 – $101.00 and is trying to settle below the psychologically important $100.00 level. In case this attempt is successful, WTI oil will head towards the nearest support, which is located in the $96.50 – $97.00 range. A move below the $96.50 level will open the way to the test of the 50 MA at $93.59.
On the upside, WTI oil needs to settle back above the $101.00 level to have a chance to gain momentum in the near term. In this case, WTI oil will head towards the $104.00 level.
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See all Natural Gas forecastsBrent Oil Retreats As Traders Wait For Israel Election Results
Brent oil has also moved lower as traders remained focused on the situation in the Middle East and monitored elections in Israel. The results of the first election since Hamas’ attack in October 2023 may have a material impact on regional politics. Recent reports indicated that voter turnout exceeded the 65% level.
From the technical point of view, Brent oil made an attempt to settle above the resistance at $114.50 – $115.00 but lost momentum and pulled back towards the $114.00 level. In case Brent oil manages to settle below $114.00, it will head towards the nearest support, which is located in the $109.00 – $109.50 range.
On the upside, a move above the $117.50 level will push Brent oil towards the resistance level at $119.50 – $120.00.
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