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Natural Gas, WTI Oil, Brent Oil – WTI Oil Pulls Back As Domestic Production Rebounds

By:
Vladimir Zernov
Published: May 24, 2023, 17:25 GMT+00:00

Crude inventories declined by 12.5 million barrels but traders focused on rising domestic production.

WTI Oil

In this article:

Key Insights

  • Natural gas remains stuck near the $2.35 level as traders wait for additional catalysts. 
  • WTI oil pulled back as domestic oil production increased to 12.3 million bpd. 
  • Brent oil moved towards the $77 level. 

Natural Gas

Natural Gas
Natural Gas 240523 Daily Chart

Natural gas settled near the $2.35 level as traders wait for additional catalysts. The weather forecasts remain unfavorable for the bulls.

If natural gas manages to stay above $2.35, it will head towards the resistance at $2.60. On the support side, a move below $2.35 will open the way to the test of the support level at $2.20.

R1:$2.60 – R2:$2.85 – R3:$3.00

S1:$2.35 – S2:$2.20 – S3:$2.00

WTI Oil

WTI Oil
WTI Oil 240523 Daily Chart

WTI oil pulled back as traders reacted to the EIA report, which showed that crude inventories declined by 12.5 million barrels from the previous week. Domestic oil production increased from 12.2 million bpd to 12.3 million bpd, which served as a bearish catalyst for WTI oil.

A move below the support level at $72.70 will push WTI oil towards the next support at $71.70. On the upside, WTI oil needs to settle above $74.00 to continue its rebound.

R1:$74.00 – R2:$75.70 – R3:$76.80

S1:$72.70 – S2:$71.70 – S3:$70.30

Brent Oil

Brent Oil
Brent Oil 240523 Daily Chart

Brent oil pulled back as traders focused on the EIA data. Recession worries served as an additional bearish catalyst for Brent oil.

The nearest support level for Brent oil is located at $76.25. In case Brent oil declines below $76.25, it will head towards the support level at $75.50.

R1:$77.50 – R2:$78.80 – R3:$79.75

S1:$76.25 – S2:$75.50 – S3:$74.60

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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