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Natural Gas, WTI Oil, Brent Oil – Oil Pulls Back From Session Highs Amid Profit-Taking

By:
Vladimir Zernov
Published: Jun 5, 2023, 18:21 GMT+00:00

Oil markets jumped as OPEC+ decided to cut production but traders used the rally as an opportunity to take some profits off the table. 

WTI Oil

In this article:

Key Insights

  • Natural gas is moving higher as traders bet that warmer weather will provide support to demand. 
  • WTI oil faced resistance near $75 and pulled back. 
  • Brent oil settled near the $77 level. 

Natural Gas

Natural Gas
Natural Gas 050623 Daily Chart

Natural gas is moving higher as traders react to the changes in weather forecasts. Warmer weather may provide support to natural gas prices in the second half of the month.

From the technical point of view, natural gas continues to trade in the $2.20 – $2.35 range. A move above the $2.35 level will push natural gas towards the resistance at $2.60.

R1:$2.35 – R2:$2.60 – R3:$2.85

S1:$2.20 – S2:$2.00 – S3:$1.80

WTI Oil

WTI Oil
WTI Oil 050623 Daily Chart

WTI oil  rallied as OPEC+ announced additional production cuts. However, traders used the rally as an opportunity to take some profits off the table, so WTI oil pulled back from session highs.

A move below the support at $71.70 will push WTI oil towards the next support level at $70.30. If WTI oil declines below this level, it will head towards the support at $69.20.

R1:$73.50 – R2:$74.70 – R3:$76.00

S1:$71.70 – S2:$70.30 – S3:$69.20

Brent Oil

Brent Oil
Brent Oil 050623 Daily Chart

Brent oil has also pulled back from session highs due to profit-taking.

It should be noted that Brent oil failed to settle above the strong resistance near the $78.50 level, so it continues to trade in the wide trading range between the support at $71.70 and the resistance at $78.50.

R1:$77.50 – R2:$78.50 – R3:$79.75

S1:$75.50 – S2:$74.60 – S3:$73.50

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

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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