Natural Gas Rebounded From Session Lows Despite Cooler Weather Forecasts
Natural gas is swinging between gains and losses as traders stay focused on yesterday’s EIA report and react to bearish changes in weather forecasts.
In case natural gas stays above the 50 MA at $2.87, it will head towards the nearest resistance level, which is located in the $3.00 – $3.05 range. A move above $3.05 will push natural gas towards the $3.25 level.
On the support side, a move below the 50 MA at $2.87 will open the way to the test of the nearest support at $2.75 – $2.80. In case natural gas declines below the $2.75 level, it will head towards the next support at $2.60 – $2.65.
WTI Oil Pulled Back As Traders Focused On Macron’s Idea
WTI oil pulls back as traders focus on the idea of French President Macron, who said that G7 countries should meet to release oil reserves.
According to Macron, the G7 meeting would be focused on “considering options for a potential release of strategic stockpiles”.
It remains to be seen whether such a move could put material pressure on oil prices in case the Strait of Hormuz remains blocked. However, the market is worried that a coordinated release of reserves could lead to lower oil prices in the near term.
Meanwhile, Saudi Arabia notified several customers in Europe that they would not have any crude shipments next month. The recent attack on the East-West pipeline, which has made it non-operational, was the reason for Saudi Arabia’s decision. Recent reports suggest that the message from Saudi Arabia is for all customers in Europe.
Currently, WTI oil is trying to settle below the $100.00 level. In case this attempt is successful, WTI oil will head towards the nearest support level, which is located in the $97.50 – $98.00 range. A move below the $97.50 level will push WTI oil towards the $95.00 level.
On the upside, WTI oil needs to climb above the resistance at $102.50 – $103.00 to have a chance to gain upside momentum in the near term. In this case, WTI oil will head towards the $109.00 level.
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See all Natural Gas forecastsBrent Oil Moved Lower As Traders Bet That G7 Countries Will Put Some Pressure On Prices
Brent oil is also losing some ground as traders focus on Macron’s efforts to release reserves. In my view, Saudi Arabia’s decision to cut shipments to customers in Europe served as the key catalyst for Macron’s idea. Perhaps, French President is worried about a potential energy crisis in Europe.
From the technical point of view, Brent oil is trying to settle below the support at $101.50 – $102.00. If this attempt is successful, Brent oil will head towards the next support at $97.00 – $97.50. RSI is in the moderate territory, so there is plenty of room to gain additional downside momentum in case the right catalysts emerge.
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