Natural Gas Retreats As Traders Focus On EIA Report
Natural gas pulls back as traders react to the EIA Weekly Natural Gas Storage report. The report indicated that working gas in storage increased by +67 Bcf from the previous week, compared to analyst forecast of +76 Bcf.
At current levels, stocks are -143 Bcf less thatn last year and +45 Bcf above the five-year average for this time of the year.
In case natural gas manages to settle below the $3.15 level, it will head towards the support at $3.00 – $3.05. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.
On the upside, a move above $3.30 will open the way to the test of the resistance at $3.40 – $3.45.
WTI Oil Tests New Highs As Crude Inventories Decline
WTI oil rallied as traders focused on rising tensions in the Middle East and reacted to the EIA Weekly Petroleum Status report. The report indicated that crude inventories declined by -8.6 million barrels from the previous week, compared to analyst forecast of -0.3 million barrels. Gasoline inventories increased by +3.5 million barrels, compared to analyst consensus of -0.5 million barrels.
Strategic Petroleum Reserve remained unchanged at 283 million barrels as U.S. did not sell oil from strategic reserves. Domestic oil production declined from 13.979 million bpd to 13.679 million bpd as producers were forced to shut production in the Gulf due to the hurricane.
Middle East tensions remain the key driver for oil markets. U.S. – Iran negotiations are stuck, and many analysts believe that another round of U.S. – Iran war is around the corner. The risks are rising, so traders stay bullish on oil. The recent diesel deal between U.S. and Russia has not had any impact on the market as it would take time to bring diesel from Russia to global markets.
Currently, WTI oil is trying to settle above the resistance level at $96.50 – $97.00. If WTI oil manages to settle above $97.00, it will head towards the next resistance, which is located in the $100.50 – $101.00 range.
On the support side, a move below the $95.00 level will push WTI oil back towards the support at $92.50 – $93.00.
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See all Natural Gas forecastsBrent Oil Is Mostly Flat As Traders Stay Focused On Middle East
Brent oil is swinging between gains and losses as traders focus on IEA’s efforts to release emergency oil inventories. According to recent reports, the U.S. asked IEA to release more oil to put pressure on fuel prices.
In case Brent oil settles above the $106.00 level, it will head towards the resistance level, which is located in the $109.00 – $109.50 range. A move above the $109.50 level will provide Brent oil with an opportunity to gain additional upside momentum.
On the support side, the nearest support level for Brent oil is located in the $101.50 – $102.00 range. A move below the $101.50 level will open the way to the test of the support at $97.00 – $97.50.
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