Natural Gas, WTI Oil, Brent Oil – Oil Is Under Pressure As China Data Disappoints

Key Insights

• Natural gas is losing ground as demand stays low. 
• WTI oil tested new lows as China’s economic data was weaker than expected. 
• Brent oil tested strong support near the $72 level. 

Natural Gas

Natural gas remains under pressure as current demand is low and the weather forecasts are uninspiring.

From the technical point of view, natural gas is trying to settle in the $2.20 – $2.35 range. A move below the $2.20 level will push natural gas towards the support at $2.00.

R1:$2.35 – R2:$2.60 – R3:$2.85

S1:$2.20 – S2:$2.00 – S1:$1.80

WTI Oil

WTI oil rebounded from session lows but remained under pressure as China’s Manufacturing PMI declined from 49.2 in April to 48.8 in May. Analysts expected that it would grow to 49.4.

In case WTI oil settles above the $69.20 level, it will move towards the resistance at $70.30. On the support side, a move below $68.00 will push WTI oil towards the support at $66.90.

R1:$69.20 – R2:$70.30 – R3:$71.70

S1:$68.00 – S2:$66.90 – S3:$65.75

Brent Oil

Brent oil has also managed to rebound from the strong support level, which is located near the $72 level.

In case Brent oil settles back above $73.50, it will head towards the resistance at $74.60. A move above $74.60 will push Brent oil towards the $75.50 level.

R1:$73.50 – R2:$74.60 – R3:$75.50

S1:$72.90 – S2:$71.80 – S3:$70.15

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