Natural Gas, WTI Oil, Brent Oil – Oil Rallies As UAE Refutes WSJ Report
- Natural gas markets continue to rebound after the multi-month sell-off.
- WTI oil settled above the $79 level after UAE said that it had no plans to leave OPEC.
- Brent oil moved above the $85 level.
Natural gas is moving higher as traders bet that demand for natural gas may increase next week. RSI remains in the moderate territory, and there is plenty of room to gain additional upside momentum. A successful test of the resistance at $2.85 will push natural gas prices towards the $3.00 level.
WTI oil was volatile today as traders reacted to the news about OPEC and UAE. WSJ reported that UAE considered to exit OPEC amid rising tensions with Saudi Arabia. Oil markets moved lower after the report was released. However, UAE officials refuted the report and said that the country had no plans to leave OPEC. This message from UAE officials provided strong support to WTI oil, which managed to climb above the $79 level.
Brent oil has also reacted to the busy news flow. UAE is unhappy with its production quotas, so news about rising tensions with Saudi Arabia appear from time to time. As UAE officials have quickly refuted the WSJ report, it looks that UAE believes that the political damage from its potential exit is too big. Not surprisingly, traders view the quick refutation as a bullish sign.
For a look at all of today’s economic events, check out our economic calendar.