Key Insights
- Natural gas rebounds after yesterday’s sell-off.
- WTI oil gains ground as traders focus on the upcoming sanctions package, which could include the Druzhba pipeline.
- Brent oil moved above the $77 level.
Natural Gas
Natural gas prices gain ground as traders bet that hot weather in Texas will provide enough support to natural gas demand.
From the technical point of view, natural gas settled in the $2.40 – $2.60 range, and it needs to test the $2.70 level to have a chance to gain sustainable upside momentum.
WTI Oil
WTI oil rallied as the new package of sanctions on Russia may impact oil supply from the southern route of the Druzhba pipeline. If these sanctions are implemented, supply would decrease by 250,000 bpd.
WTI oil needs to settle above $73.15 to continue its rebound. From a big picture point of view, traders should not expect a sustainable rally until WTI oil climbs above the $74.75 level.
Brent Oil
Brent oil is also moving higher amid a broad rally in the oil markets, which is driven by the news about the new package of sanctions on Russia.
Brent oil is moving towards the key resistance in the $78.00- $78.45 range. A move above this area will provide Brent oil with an opportunity to gain strong momentum.
For a look at all of today’s economic events, check out our economic calendar.