Natural Gas Settled Near The $6.00 Level After EIA Report

Key Insights

• Natural gas traders stay focused on the recent changes in the weather forecast. 
• WTI oil pulls back as traders remain worried about demand. 
• Gold gains some ground as U.S. dollar declines. 

Natural Gas Gains Ground As Traders Bet On Colder Weather

Natural gas prices pulled back towards the $5.85 level after the release of the EIA Weekly Natural Gas Storage Report but quickly rebounded towards the $6.00 level.

The report indicated that working gas in storage declined by 21 Bcf from the previous week, compared to analyst consensus of -31 Bcf.

The recent revision of weather forecasts provided support to natural gas markets today, and the market may stay focused on the weather.

WTI Oil Faced Strong Resistance Near $75

WTI oil  pulled back below the $72 level after an unsuccessful attempt to settle above the $75 level.

The market does not believe that the Russian oil price cap scheme will hurt Russian oil exports. Interestingly, the relaxation of the zero-COVID policy in China also failed to provide support to oil markets. Traders are worried that demand will fall due to weak economic activity.

WTI oil managed to get below the support at $72.30 and is moving towards the next support level at $71.00. In case WTI oil declines below this level, it will head towards the next support at $70.00. A successful test of this support will push WTI oil towards the support at $69.50.

On the upside, the previous support at $72.30 will serve as the first resistance level for WTI oil. In case WTI oil manages to climb back above this level, it will move towards the resistance at $73.00. A move above this level will open the way to the test of the resistance at $73.65.

Gold Tries To Settle Above $1785 As Dollar Pulls Back

Gold managed to get above the resistance level at $1785 as the U.S. dollar moved lower against a broad basket of currencies.

Meanwhile, silver gained strong upside momentum and moved towards the $23.00 level. Platinum traded near $1015, while palladium managed to get back above the $1900 level.

Copper Stays Strong As Traders Hope That China’s Demand Will Increase

Copper  is trying to settle above the $3.90 level as traders stay focused on the relaxation of the zero-COVID policy in China, which is the world’s main consumer of copper. A move above the $3.90 level will open the way to the test of November highs at $3.96.

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