Natural Gas, WTI Oil, Brent Oil – Oil Markets Test New Highs

Key Insights

• Oil markets moved to new highs as traders focused on rising demand from China. 
• OPEC expects that China’s demand will grow at a robust pace. 
• Natural gas failed to settle above the $3.75 level as current demand remained weak.

Natural Gas

Natural gas settled near the $3.60 level as traders remained focused on weather forecasts. The current market consensus implies that weather will turn colder closer to the end of the month. However, it remains to be seen whether forecasts will provide additional support to natural gas markets in the near term as current demand for natural gas remains low.

WTI Oil

WTI oil  tested new highs today as traders bet on rising demand from China. In its latest report, OPEC said that world demand will grow by 2.22 million bpd in 2023. However, this estimate could be revised as the fourth quarter of 2022 was stronger than expected.

Brent Oil

Brent oil has also enjoyed strong support in today’s trading session. While resistance near the $87 level remains strong, Brent oil will have a good chance to climb above this level if traders stay focused on rising demand from China.

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