Natural Gas, WTI Oil, Brent Oil – Oil Markets Rebound As Traders Focus On China’s PMI Reports
- Natural gas settled near multi-month lows as weather forecasts pointed to warmer trends from February 5.
- Oil markets gained ground as China’s PMI reports exceeded analyst expectations and showed that the economy rebounded in January.
- Rising tensions in the Middle East served as an additional positive catalyst for oil markets.
Natural gas remains under pressure as bulls stay focused on longer-term weather forecasts. The weather is expected to get warmer from February 5, which is bearish for natural gas markets. The current demand of natural gas is high, but it fails to provide enough support to natural gas markets.
WTI oil gained ground as traders reacted to strong economic data from China and rising tensions in the Middle East. China’s PMI reports exceeded analyst expectations and indicated that the country’s economy has started to rebound at a robust pace.
Brent oil moved back above the $85 level. In case Brent oil manages to settle above the 50 EMA at $85.15, it will gain additional upside momentum and move towards the resistance level at $87.50.
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