Natural gas tested new lows as traders focused on disappointing weather forecasts.
WTI oil moved lower amid lack of additional upside catalysts.
Brent oil moved towards the $85 level as OPEC+ cancelled the meeting of the technical committee.
Natural Gas
Natural Gas 300123 Daily Chart
Natural gas keeps moving lower amid lack of upside catalysts. While the current demand for natural gas is high, longer-term forecasts point to warmer weather, which is bearish for natural gas prices.
WTI Oil
WTI Oil 300123 Daily Chart
WTI oil pulls back despite drone attack in Iran, which happened over the weekend. Russian oil stays in the market despite new sanctions, and it looks that oil will need additional catalysts to move higher.
Brent Oil
Brent Oil 300123 Daily Chart
Brent oil is trying to settle below the $85 level as traders prepare for the OPEC+ meeting. OPEC+ technical committee’s meeting, which was scheduled for January 31, was cancelled. Typically, such meetings are cancelled when OPEC+ plans to leave its quotas intact. As traders are worried about a potential recession in the developed economies, the absence of additional production cuts may be viewed as a bearish catalyst for oil markets.
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Vladimir is an independent trader, with over 18 years of experience in the financial markets. His expertise spans a wide range of instruments like stocks, futures, forex, indices, and commodities, forecasting both long-term and short-term market movements.