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Natural Gas, WTI Oil, Brent Oil – Oil Markets Rebound Amid Rising Risk Appetite

By:
Vladimir Zernov
Updated: May 29, 2023, 05:06 GMT+00:00

Oil traders cheer progress on debt ceiling negotiations.

WTI Oil

In this article:

Key Insights

  • 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

Natural Gas
Natural Gas 260523 Daily Chart

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

WTI Oil
WTI Oil 260523 Daily Chart

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

Brent Oil
Brent Oil 260523 Daily Chart

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.

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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