Natural Gas Moves Higher As Storage Build Misses Estimates
Natural gas gains some ground as traders react to the EIA Weekly Natural Gas Storage Report. The report indicated that working gas in storage increased by +77 Bcf from the previous week, compared to analyst consensus of +81 Bcf. Lower-than-expected build provided support to natural gas markets.
At current levels, stocks are -109 Bcf less than last year and +54 Bcf above the five-year average for this time of the year.
From the technical point of view, natural gas continues its attempts to settle above the resistance level at $3.00 – $3.03. In case natural gas manages to settle above the $3.03 level, it will head towards the next resistance level, which is located in the $3.20 – $3.23 range.
On the support side, natural gas needs to settle below the $2.90 level to have a chance to gain downside momentum in the near term. In this case, natural gas will move towards the nearest support at $2.80 – $2.83.
WTI Oil Gains Ground On Dip-Buying
WTI oil rebounds as traders focus on risks of additional escalation in the Middle East. Some traders are ready to bet that President Trump will restart the military operation against Iran despite Republicans’ defeat in midterm elections.
Today, Russia advised its citizens to avoid travelling to Iran amid risks of escalation. Interestingly, the statement from Russia’s Ministry of Foreign Affairs came on the day Russia’s President Putin met with Iran’s security chief Rezaei in Moscow.
It is not clear whether election results will play a major role in decision-making. In case Iran is not ready for concessions regarding its nuclear program, the U.S. will have few options, and the restart of military action would be a natural choice.
WTI oil failed to settle below the support at $87.50 – $88.00 and rebounded towards the $90.00 level. In case WTI oil settles above $90.00, it will head towards the nearest resistance at $91.50 – $92.00. A successful test of this level will open the way to the test of the 50 MA at $95.37. If WTI oil climbs above the 50 MA, it will get to the test of the resistance at $96.00 – $96.50.
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See all Natural Gas forecastsBrent Oil Tests The $98.00 Level
Brent oil has also rebounded from multi-week lows as traders rushed to buy the dip. It looks that short-sellers rushed to take profits off the table after strong pullback from October lows.
Brent oil climbed back above the support at $95.50 – $96.00 and is trying to settle above the $98.00 level. If Brent oil settles above $98.00, it will head towards the resistance level at $99.50 – $100.00. A move above the psychologically important $100.00 level will push Brent oil towards the 50 MA at $104.00.
On the support side, Brent oil needs to settle below the support at $95.50 – $96.00 to have a chance to gain downside momentum in the near term. In this case, Brent oil will head towards the next support at $91.00 – $91.50.
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