Natural Gas Retreats As Storage Build Exceeds Estimates
Natural gas pulls back as traders react to the EIA Weekly Natural Gas Storage Report. The report indicated that working gas in storage increased by +85 Bcf from the previous week, compared to analyst forecast of +79 Bcf. Higher-than-expected build forced bulls to rush for exits.
At current levels, stocks are -130 Bcf less than last year and +68 Bcf above the five-year average for this time of the year.
If natural gas settles below the $3.15 level, it will head towards the nearest support at $3.00 – $3.05. A move below the $3.00 level will push natural gas towards the 50 MA at $2.93.
On the upside, natural gas needs to settle above the resistance at $3.20 – $3.25 to gain upside momentum in the near term. In this case, natural gas will head towards the resistance at $3.40 – $3.45.
WTI Oil Soars As Traders Focus On Risks Of Escalation In The Middle East
WTI oil rallies as traders focus on risks of escalation in the Middle East. President Trump said that U.S. would not attack Iran before November’s midterm elections. He did not provide additional details but added that the naval blockade of Iranian ports would stay.
Traders also monitored Hurricane Isaias, which was gaining strength. According to recent reports, offshore producers have already shut down 25% of oil production.
Currently, WTI oil is trying to settle above the resistance at $92.50 – $93.00. In case this attempt is successful, WTI oil will move towards the next resistance level, which is located in the $96.50 – $97.00 range.
On the support side, WTI oil needs to settle below the support level at $88.50 – $89.00 to have a chance to gain additional downside momentum.
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See all Natural Gas forecastsBrent Oil Tests The $105.00 Level
Brent oil rallied as traders remained worried that U.S. – Iran conflict would intensify in the near term. Trump’s comments triggered a brief pullback, but traders were ready to buy the dip.
There are no signs indicating that U.S. and Iran are moving towards a deal. Iran has recently said that it plans to keep its uranium inside the country. The country’s nuclear program was the key reason for the military operation against Iran. In case Iran is not ready for concessions in its nuclear program, another round of war would be inevitable.
From the technical point of view, Brent oil climbed above the resistance at $101.50 – $102.00 and is trying to setlte above the $105.00 level. In case this attempt is successful, Brent oil will head towards the next resistance, which is located in the $109.00 – $109.50 range. A move above the $109.50 level will indicate that Brent oil is ready for a strong rally.
On the support side, a move below the $101.50 level will push Brent oil towards the psychologically important $100.00 level. If Brent oil settles below $100.00, it will head towards the next support at $97.00 – $97.50.
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