Natural Gas, WTI Oil, Brent Oil – Oil Soars 4% As Traders Bet That The Bottom Is In
Key Insights
- Natural gas pulled back as traders reacted to the EIA report.
- WTI oil rallied above the $70 level as domestic oil production declined.
- Brent oil moved towards the $75 level.
Natural Gas
Natural gas remains under pressure after the release of the EIA report, which indicated that working gas in storage increased by 110 Bcf from the previous week.
A successful test of the $2.20 level will push natural gas towards the support at $2.00. If natural gas declines below $2.00, it will move towards the next support at $1.80.
R1:$2.35 – R2:$2.60 – R3:$2.85
S1:$2.20 – S2:$2.00 – S3:$1.80
WTI Oil
WTI oil rallied as traders reacted to the EIA report, which showed that crude inventories increased by 4.5 million barrels from the previous week. Domestic oil production declined from 12.3 million bpd to 12.2 million bpd.
A move above the $70.30 level will push WTI oil towards the next resistance at $71.70. If WTI oil climbs above $71.70, it will head towards the $73.50 level.
R1:$70.30 – R2:$71.70 – R3:$73.50
S1:$69.20 – S2:$68.00 – S3:$66.90
Brent Oil
Brent oil has also enjoyed strong support today. Traders bet that Brent oil will not get below the strong support near the $72 level.
If Brent oil settles above $74.60, it will head towards the $75.50 level. A move above $75.50 will open the way to the test of the resistance at $77.50.
R1:$74.60 – R2:$75.50 – R3:$77.50
S1:$73.50 – S2:$72.90 – S3:$71.80
For a look at all of today’s economic events, check out our economic calendar.
