Natural Gas Retreats As Traders Focus On EIA Data
Natural gas is losing ground as traders react to the EIA Weekly Natural Gas Storage report. The report indicated that working gas in storage increased by +64 Bcf from the previous week, in line with analyst consensus.
At current levels, stocks are -138 Bcf less than last year and +79 Bcf above the five-year average for this time of the year.
In case natural gas stays below the support at $3.00 – $3.05, it will head towards the 50 MA at $2.91. A move below the 50 MA will push natural gas towards the next support at $2.75 – $2.80.
On the upside, natural gas needs to climb above the $3.05 level to have a chance to gain upside momentum in the near term. In this case, natural gas will head towards the resistance level at $3.20 – $3.25.
WTI Oil Rallies After Trump’s Hawkish Comments On Iran
WTI oil rallied as President Trump said U.S. could ramp up bombing of Iran after the November midterm elections. Trump did not elaborate as he said that journalists were asking him where the U.S. was going to bomb Iran.
Trump’s hawkish comments raised worries about additional escalation in the Middle East. Meanwhile, Europe had an emergency meeting and discussed the situation in diesel markets.
European countries may release fuel from strategic stockpiles, although it remains to be seen whether such a measure would be approved. According to a Politico report, the U.S. asked EU to release 120 million barrels of diesel.
WTI oil failed to settle below the support at $88.50 – $89.00 and is trying to settle above the resistance level at $92.50 – $93.00. In case WTI oil manages to settle above the $93.00 level, it will head towards the next resistance level, which is located in the $96.50 – $97.00 range. RSI is in the moderate territory, so there is plenty of room to gain additional upside momentum in case the right catalysts emerge.
On the support side, a move below the $91.00 level will push WTI oil back towards the support at $88.50 – $89.00.
Natural Gas Price Forecast
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See all Natural Gas forecastsBrent Oil Tests Resistance At $101.50 – $102.00
Brent oil rallied as traders focused on Trump’s comments and feared that the situation in the Middle East will deteriorate.
From the technical point of view, Brent oil attempts to settle above the resistance level at $101.50 – $102.00. If Brent oil manages to settle above the $102.00 level, it will gain additional upside momentum and move towards the next resistance at $109.00 – $109.50. 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 psychologically important $100.00 level will push Brent oil back towards the support at $97.00 – $97.50.
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