Natural Gas Moves Higher As Traders Focus On EIA Data
Natural gas gains some ground as traders focus on the EIA Weekly Natural Gas Storage Report. The report indicated that working gas in storage increased by +44 Bcf from the previous week, compared to analyst forecast of +49 Bcf.
At current levels, stocks are -122 Bcf less than last year and +118 Bcf above the five-year average for this time of the year.
From the technical point of view, natural gas made an attempt to settle above the $2.95 level but lost momentum and pulled back. In case natural gas climbs above $2.95, it will head towards the next resistance, which is located in the $3.00 – $3.05 range. RSI is in 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 50 MA at $2.87 will push natural gas towards the support level at $2.75 – $2.80.
WTI Oil Rebounds As Traders Buy The Dip
WTI oil rebounded from session lows as traders waited for news from the Middle East. Saudi Arabia is expected to restart operations of the damaged pipeline in the upcoming days, but it remains to be seen whether this pipeline would not be attacked again.
At this point, there are no signs indicating that U.S. and Iran are ready to get back to negotiations. U.S. continues naval blockade of Iranian ports, putting significant pressure on the country’s economy. Meanwhile, the Strait of Hormuz remains de-facto blocked, and a limited number of vessels get through the world’s key oil route.
Recent reports indicated that China put pressure on Iran to rein in Houthis. The Yemen-based Houthis have recently achieved major success against forces of the country’s official government. As a result, Houthis mostly control the Bab-el-Mandeb Strait. Houthis are backed by Iran, and China does not want them to block oil supply.
From a big picture point of view, the situation remains tense, so it’s not surprising to see that oil did not manage to gain strong downside momentum.
Currently, WTI oil is trying to settle back above the resistance level at $102.50 – $103.00. In case this attempt is successful, WTI oil will head towards the next resistance, which is located in the $109.00 – $109.50 range.
On the support side, a move below the psychologically important $100.00 level will open the way to the test of the support at $97.50 – $98.00.
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See all Natural Gas forecastsBrent Oil Attempts To Settle Back Above $105.00
Brent oil has also rebounded from session lows as traders evaluated supply risks. The market remains worried that the Strait of Hormuz would be closed for several months as U.S. and Iran are not ready for any concessions.
If Brent oil climbs back above the $105.00 level, it will head towards the resistance level at $108.50 – $109.00. A move above the $109.00 level will push Brent oil towards the next resistance level at $112.50 – $113.00.
On the support side, Brent oil needs to settle below the support at $101.50 – $102.00 to have a chance to gain downside momentum in the near term.
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