Natural Gas Rebounds After Sell-Off
Natural gas rebounds from session lows as traders stay focused on weather forecasts and prepare for tomorrow’s EIA report. The report is expected to show that working gas in storage inceased by +63 Bcf from the previous week.
In case natural gas settles back above the support at $3.00 – $3.05, it will head towards the $3.15 level. A move above $3.15 will open the way to the test of the resistance at $3.20 – $3.25.
On the support side, natural gas needs to settle below the $3.00 level to have a chance to gain downside momentum in the near term. In this case, natural gas will head towards the 50 MA at $2.91.
WTI Oil Gains Ground As Traders Buy The Dip
WTI oil gains ground as traders react to the EIA report and focus on the upcoming OPEC+ decision.
According to recent reports, OPEC+ will leave output targets unchanged. This is not surprising as some of the members face serious disruptions due to conflicts.
EIA report indicated that crude inventories increased by +0.9 million barrels from the previous week, compared to analyst forecast of -0.3 million barrels. Gasoline inventories decreased by -1.7 million barrels, while analysts expected that they would decline by -0.5 million barrels.
Strategic Petroleum Reserve declined from 284.6 million barrels to 283.8 million barrels as U.S. continued to sell oil from strategic reserves. Domestic oil production increased from 13.939 bpd to 13.955 bpd, moving towards the psychologically important 14.00 bpd level.
Traders also reacted to the horrific incident with FlyDubai plane. A pilot of the jet, which was heading to Israel’s Tel Aviv, stabbed another pilot and tried to crash the plane.
Passengers and members of the crew managed to disarm the terrorist and stabilize the plane. The full details of the incident are unknown, but investigators will surely search for potential Iran links. The outcome of the investigation may have an impact on the situation in the region.
In case WTI oil stays above the $90.00 level, it will head towards the resistance level, which is located in the $92.50 – $93.00 range. On the support side, a successful test of the support at $88.50 – $89.00 will open the way to the test of the next support level at $84.50 – $85.00.
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See all Natural Gas forecastsBrent Oil Moves Away From Recent Lows
Brent oil rebounded towards the $98.00 level as traders focused on FlyDubai incident and waited for news about U.S. – Iran talks. It remains to be seen whether both sides of negotiations are ready to make a serious deal.
In case Brent oil manages to settle above the support at $97.00 – $97.50, it will move towards the resistance level at $101.50 – $102.00. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.
On the support side, a move below the $97.00 level will open the way to the test of the 50 MA at $94.47. If Brent oil declines below the 50 MA, it will head towards the support at $92.50 – $93.00.
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