Natural Gas, WTI Oil, Brent Oil – Oil Markets Retreat After EIA Report
- Natural gas is testing new lows near the $2.50 level.
- WTI oil declined towards the $76 level as crude inventories increased.
- Brent oil settled below the $83 level.
Natural gas prices test new lows amid lack of any improvement in weather forecasts. While the current demand for natural gas is high, the weather will get warmer from February 5, which is bearish for natural gas markets.
WTI oil gained strong downside momentum after the release of the EIA report. The report indicated that crude oil inventories increased by 4.1 million barrels from the previous week, compared to analyst consensus of 0.4 million barrels. Total motor gasoline inventories grew by 2.6 million barrels, while distillate fuel inventories increased by 2.3 million barrels. Domestic oil production remained unchanged at 12.2 million bpd. Rising crude inventoreis served as the main negative catalyst for WTI oil.
Brent oil has also found itself under significant pressure. Today, OPEC+ kept its oil production policy unchanged. OPEC’s decision had little impact on oil markets as traders expected that no changes would be made.
For a look at all of today’s economic events, check out our economic calendar.