Natural Gas Rebounds After Yesterday’s Pullback
Natural gas gains ground as traders prepare for tomorrow’s EIA report, which is expected to show that working gas in storage increased by +66 Bcf from the previous week.
Natural gas moved above the 50 MA at $3.27 and is trying to settle above the $3.30 level. In case this attempt is successful, natural gas will head towards the resistance level at $3.40 – $3.43. A move above the $3.43 level will push natural gas towards the $3.60 level.
On the support side, a move below the 50 MA will open the way to the test of the support level at $3.20 – $3.23. If natural gas declines below the $3.20 level, it will head towards the next support, which is located in the $3.00 – $3.03 range.
WTI Oil Moves Higher As Traders Focus On The Situation In The Middle East
WTI oil gains ground as traders react to the EIA Weekly Petroleum Status Report and focus on news from the Middle East.
EIA report indicated that crude inventories increased by +4.65 million barrels, compared to analyst forecast of -1.1 million barrels. Gasoline inventoreis grew by +1.8 barrels, while analysts expected that they would fall by -0.1 million barrels.
Strategic Petroleum Reserve declined from 282.2 million barrels to 279.5 million barrels as U.S. continued to sell oil from strategic reserves. Domestic oil production increased from 14.003 million bpd to 14.013 million bpd and settled above the psychologically important 14 million bpd level.
In the Middle East, Iran-backed Houthis continue to attack Saudi Arabia. It looks that Iran is trying to push oil prices higher amid stalemate in U.S. – Iran negotiations.
Not surprisingly, oil prices are moving higher as traders focus on rising risks of additional escalation in the Middle East. Houthis’ attacks may damage Saudi Arabia’s oil facilities and hurt the country’s oil exports.
Currently, WTI oil is trying to settle above the resistance level at $87.50 – $88.00. In case WTI oil manages to settle above the $88.00 level, it will head towards the $90.00 level. A move above $90.00 will open the way to the test of the resistance at $91.50 – $92.00. If WTI oil moves above $92.00, it will head towards the 50 MA at $95.29.
On the support side, WTI oil needs to settle below the $85.00 level to gain downside momentum in the near term. If WTI oil pulls back below $85.00, it will head towards the support at $83.00 – $83.50.
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See all Natural Gas forecastsBrent Oil Tests New Highs
Brent oil rallied as traders reacted to Houthis’ attacks and focused on risks of escalation in the Middle East.
From the technical point of view, Brent oil is trying to settle above the resistance level at $95.50 – $96.00. If Brent oil manages to settle above the $96.00 level, it will head towards the resistance level at $100.00 – $100.50. A successful test of the resistance at $100.00 – $100.50 will push Brent oil towards the 50 MA at $104.11. RSI is the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.
On the support side, a move below the $93.00 level will push Brent oil back towards the support at $91.00 – $91.50.
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