Natural Gas Retreats As Storage Build Exceeds Expectations

Key Insights

• Natural gas prices pull back as EIA report exceeds analyst estimates. 
• WTI oil retreats as traders worry that high interest rates will hurt demand for oil. 
• Gold tested yearly lows as traders reacted to stronger dollar and higher Treasury yields. 

Natural Gas Is Under Pressure

Natural gas markets are moving lower after the release of the EIA Weekly Natural Gas Storage Report, which indicated that working gas in storage increased by 107 Bcf from the previous week.

This is a surprising report as analysts expected that natural gas in storage would grow by 97 Bcf. The EIA data will likely put more pressure on natural gas markets in the near term. The weather forecast remains unfavorable for high natural gas consumption,  and the robust increase of natural gas inventories is bearish for the market.

WTI Oil Declined Towards The $88 Level

WTI oil pulled back amid concerns about aggressive rate hikes from the Fed. WTI oil has recently made an attempt to settle above the $90 level but lost momentum after the Fed Interest Rate Decision.

Currently, WTI oil is trying to settle below the support at $87.75. In case commodity traders stay worried about strong dollar and higher interest rates, WTI oil will be able to get below $87.75 and move towards the next support level at $86.20.

Gold Tested Yearly Lows

Stronger dollar and higher Treasury yields put pressure on gold , which has recently made an attempt to settle below the yearly lows at the $1615 level. If gold declines below $1615, it will gain additional downside momentum and move towards the next support level at $1590.

Platinum and palladium have also found themselves under pressure today. Platinum pulled back towards the $930 level, while palladium settled at multi-month lows below the $1800 level.

Meanwhile, silver failed to settle below the $19.00 level and rebounded towards the 50 EMA at $19.35.

Copper Pulled Back Towards $3.40

Copper  is trading near the $3.40 level as traders react to higher Treasury yields and stronger dollar.

Copper markets have been stuck in a tight range in recent weeks. Most likely, copper will continue to trade near the $3.40 – $3.50 area in absence of additional catalysts.

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