Key Insights
- Natural gas made an attempt to settle above the $2.85 level.
- WTI oil rallied as traders bet that Saudi Arabia and Russia would extend their voluntary production cuts.
- Brent oil moved higher amid a broad rally in the oil markets.
Natural Gas
Natural gas continues its attempts to settle above the resistance at $2.80 – $2.85 as traders react to the EIA report, which showed that working gas in storage increased by 32 Bcf from the previous week.
From a big picture point of view, natural gas remains range-bound, and it remains to be seen whether bulls will find enough catalysts to push natural gas above the $2.85 level.
WTI Oil
WTI oil tests new highs as traders expect that Saudi Arabia will extend its voluntary production cut of 1 million bpd into October. Russia is also expected to extend it production cuts.
In case WTI oil stays above the $81.75 level, it will head towards the resistance at $86.00 – $87.30. WTI oil may also face some resistance near August highs at $84.85.
Brent Oil
Brent oil is trying to settle above the resistance at $85.10 – $86.00 as traders focus on tight supplies and production cuts. The recent EIA report, which showed that crude inventories declined by 10.6 million barrels, provided material support to oil markets.
If Brent oil settles above the $86.00 level, it will move towards the resistance at $88.80 – $90.00.
For a look at all of today’s economic events, check out our economic calendar.
