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Natural Gas, WTI Oil, Brent Oil – Oil Markets Pull Back Amid Profit-Taking

By:
Vladimir Zernov
Published: Jan 24, 2023, 18:11 UTC

Oil traders are worried about demand in developed economies after the release of PMI reports.

WTI Oil

In this article:

Key Insights

  • Natural gas is moving lower as weather forecasts remain unfavorable for high natural gas demand. 
  • Oil markets are losing ground as traders take profits near multi-week highs.
  • It looks that oil traders want to reduce their risks ahead of tomorrow’s EIA report.

Natural Gas

Natural Gas
Natural Gas 240123 Daily Chart

Natural gas declined below the $3.30 level as traders focused on weather forecasts, which have trended warmer for the end of the month. Yesterday, Freeport LNG announced that it asked U.S. regulators for the restart of the operation. The news provided temporary support to natural gas markets, but concerns about weak demand weighed on prices.

WTI Oil

WTI Oil
WTI Oil 240123 Daily Chart

WTI oil pulled back belwo the $81 level as traders took some profits off the table above the recent rebound. It looks that WTI oil faced significant resistance near $82.50. Most likely, it will need additional catalysts to move above this level.

Brent Oil

Brent Oil
Brent Oil 240123 Daily Chart

Brent oil has also found itself under material pressure in today’s trading session. While Brent oil was not overbought, it gained almost 15% from yearly lows, so traders’ desire to take some profits off the table is understandable.

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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