Natural Gas, WTI Oil, Brent Oil – Oil Soars 3% On Debt Ceiling Optimism

Key Insights

• Natural gas is trying to settle above the $2.40 level as the rebound continues. 
• WTI oil moved towards the $73 level after the EIA report. 
• Brent oil attempts to climb above the $77 level. 

Natural Gas

Natural gas continues to move higher after the successful test of the $2.35 level. The current demand for natural gas is low, but bulls hope that the situation will change.

The technical picture remains bullish as natural gas managed to settle above $2.35. The next resistance is located at $2.60, although a new resistance level may emerge in the $2.35 – $2.60 range.

R1:$2.60 – R2:$2.85 – R3:$3.00

S1:$2.35 – S2:$2.20 – S3:$2.00

WTI Oil

WTI oil rallied as traders reacted to the EIA report. The initial reaction was modest, but declining domestic production has finally served as a significant positive catalyst for WTI oil.

The nearest resistance level for WTI oil is located at $74.00. A move above this level will push WTI oil towards the next resistance at $75.70.

R1:$74.00 – R2:$75.70 – R3:$76.70

S1:$72.70 – S2:$71.70 – S3:$70.30

Brent Oil

Brent oil moved towards the $77 level. Traders bet that Democrats and Republicans will reach a consensus deal on the debt ceiling in the upcoming days.

A move above the $77.50 level will push Brent oil towards the resistance at $78.80. If Brent oil climbs above $78.80, it will head towards the next resistance level at $79.75.

R1:$77.50 – R2:$78.80 – R3:$79.75

S1:$76.25 – S2:$75.50 – S3:$74.60

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