Natural Gas, WTI Oil, Brent Oil – Oil Markets Rebound Amid Rising Risk Appetite
- Natural gas traders switch from June contract to July contract.
- WTI oil rebounds as reports indicate that Democrats and Republicans may soon reach consensus on the debt ceiling deal.
- Brent oil settled back above the $76 level.
Natural gas is volatile ahead of the expiration of June contract. The weather forecasts remain unfavorable, although futures contracts indicate that traders expect a steady increase in natural gas prices in the second half of the year.
From the technical point of view, natural gas needs to settle above the $2.60 level to have a chance to gain sustainable upside momentum.
R1:$2.60 – R2:$2.85 – R3:$3.00
S1:$2.35 – S2:$2.20 – S3:$2.00
WTI oil gains some ground after yesterday’s sell-off as demand for riskier assets increases. Traders bet that Democrats and Republicans will soon announce a debt ceiling deal.
A move above the resistance at $72.70 will push WTI oil towards the resistance at $74.00. In case WTI oil settles above $74.00, it will head towards the $75.70 level.
R1:$72.70 – R2:$74.00 – R3:$75.70
S1:$71.70 – S2:$70.30 – S3:$69.20
Brent oil settled back above the $76 level on debt ceiling optimism. The U.S. dollar is mostly flat against a broad basket of currencies, which is bullish for oil markets.
If Brent oil climbs above the $77.50 level, it will move towards the resistance at $78.80. On the support side, a successful test of the $76.25 level will open the way to the test of the next support at $75.50.
R1:$77.50 – R2:$78.80 – R3:$79.75
S1:$76.25 – S2:$75.50 – S3:$74.60
For a look at all of today’s economic events, check out our economic calendar.