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Natural Gas, WTI Oil, Brent Oil – Oil Dives As Russia Does Not Expect Additional Production Cuts

By:
Vladimir Zernov
Published: May 25, 2023, 18:12 GMT+00:00

Natural gas prices settled below the $2.35 level as traders reacted to the EIA report.

WTI Oil

In this article:

Key Insights

  • Natural gas is moving towards the support at $2.20.
  • WTI oil pulled back below the $72 level as Russia’s Novak said that he did not expect additional moves from OPEC+.
  • Brent oil declined towards the $76 level.

Natural Gas

Natural Gas
Natural Gas 250523 Daily Chart

Natural gas prices moved lower after EIA report indicated that working gas in storage increased by 96 Bcf, compared to analyst consensus of +100 Bcf.

The nearest support level for natural gas is located at $2.20. If natural gas settles below $2.20, it will head towards the next support at $2.00. A move below $2.00 will push natural gas towards the support at $1.80.

R1:$2.35 – R2:$2.60 – R3:$2.85

S1:$2.20 – S2:$2.00 – S3:$1.80

WTI Oil

WTI Oil
WTI Oil 250523 Daily Chart

WTI oil as traders reacted to the comments from Russian Deputy Prime Minister Alexander Novak, who said that OPEC+ would not make additional steps at the upcoming meeting in June.

If WTI oil settles below the support at $71.70, it will move towards the next support level at $70.30. In case WTI oil declines below $70.30, it will head towards the $69.20 level.

R1:$72.70 – R2:$74.00 – R3:$75.70

S1:$71.70 – S2:$70.30 – S3:$69.20

Brent Oil

Brent Oil
Brent Oil 250523 Daily Chart

Brent oil has also found itself under pressure amid a broad sell-off in the oil market, which was triggered by Novak’s comments.

A move below the $75.50 level will push Brent oil towards the support at $74.60. If Brent oil declines below $74.60, it will head towards the next support level at $73.50.

R1:$76.25 – R2:$77.50 – R3:$78.80

S1:$75.50 – S2:$74.60 – S3:$73.50

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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