Natural Gas, WTI Oil, Brent Oil – Oil Markets Retreat As Treasury Yields Rise

Key Insights

• Natural gas prices keep moving lower as traders cannot find upside catalysts. 
• Oil markets are under pressure as traders focus on higher Treasury yields. 
• The upcoming price cap on Russian oil products, which will be introduced this Sunday, does not provide any support to oil prices. 

Natural Gas

Natural gas tested new lows as traders continued to prepare for warmer weather. There are no material upside catalysts for natural gas markets, so prices are moving lower.

WTI Oil

WTI oil gained downside momentum after the release of strong U.S. jobs data. Traders are worried that higher interest rates will put more pressure on the oil markets. The rebound of the U.S. dollar serves as an additional negative catalyst for oil.

Brent Oil

Brent oil has also moved to new lows in today’s trading session. EU countries have reached consensus on the details of the price caps on Russian oil products, but it remains to be seen whether they will have a significant impact on Russian exports. While Russia says that price caps destabilize markets, there is no evidence that Russian export volumes have suffered, which is bearish for oil prices.

For a look at all of today’s economic events, check out our economic calendar.