Natural Gas, WTI Oil, Brent Oil – Oil Dives 7% As Banking Crisis Fears Spread To Europe

Key Insights

• Natural gas is trying to settle below the $2.40 level. 
• WTI oil tested yearly lows as traders focused on the potential banking crisis in Europe. 
• Brent oil settled below the $73 level. 

Natural Gas

Natural gas declined towards the $2.40 level amid a broad sell-off in the energy markets. Traders should note that the fast moves in bonds, oil, or banking stocks may force some funds to cover their positions elsewhere. In the near term, this is a bearish factor for energy markets.

WTI Oil

WTI oil dived 7% amid fears about a potential banking crisis in the EU. The move out of the multi-month trading range provided WTI oil with an opportunity to gain strong momentum. Today’s sell-off was likely triggered by traders’ protective stops and margin calls.

Brent Oil

Brent oil declined below the $73 level as traders moved out of riskier assets. The near term dynamics of the oil markets will depend on regulators’ efforts to calm financial markets. Oil traders should watch the dynamics of Treasury yields and the U.S. dollar as they will show whether demand for safe-haven assets has started to decline.

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