Natural Gas, WTI Oil, Brent Oil – Oil Dives 5% As Traders Worry That OPEC+ Would Not Cut Production

Vladimir Zernov
Published: May 30, 2023, 18:05 GMT+00:00

Oil markets gained strong downside momentum and tested multi-week lows.


In this article:

Key Insights

  • Natural gas is losing ground as traders focus on disappointing weather forecasts. 
  • WTI oil and Brent oil are under strong pressure as traders bet that OPEC+ will not provide additional support to oil markets at the upcoming meeting. 
  • Recession worries and U.S. debt ceiling deal vote serve as additional bearish catalysts for oil prices. 

Natural Gas

Natural Gas
Natural Gas 300523 Daily Chart

Natural gas remains under pressure due as weather forecasts point to light national natural gas demand.

The nearest support level for natural gas is located at $2.20. In case natural gas declines below this level, it will move towards the support at $2.00. A successful test of the support at $2.00 will push natural gas towards the $1.80 level.


WTI Oil 300523 Daily Chart

WTI oil is under strong pressure as traders bet that OPEC+ will not cut production at the upcoming meeting on June 4. The debt ceiling vote serves as an additional bearish catalyst as some traders worry that the U.S. debt ceiling deal would not pass through Congress.

A move below the $69.20 level will push WTI oil towards the support at $68.00. In case WTI oil declines below $68.00, it will head towards the next support level at $66.90.

R1:$70.30 – R2:$71.70 – R3:$72.70

S1:$69.20 – S2:$68.00 – S3:$66.90

Brent Oil

Brent Oil
Brent Oil 300523 Daily Chart

Brent oil has also suffered a strong sell-off amid a broad pullback in the oil markets.

If Brent oil declines below the support at $73.50, it will move towards the next support level at $72.90. A successful test of this level will push Brent oil towards the support at $71.80.

R1:$74.60 – R2:$75.50 – R3:$76.25

S1:$73.50 – S2:$72.90 – S3:$71.80

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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