Natural Gas Tries To Settle Back Above $5.50 After EIA Report

Key Insights

• Natural gas failed to settle below the support at $5.35 and rebounded towards the $5.50 level. 
• WTI oil made an attempt to settle above $86.
• Copper moved back above the $3.40 level. 

Natural Gas Attempts To Rebound

Natural gas moved closer to the $5.50 level after the release of the EIA Weekly Natural Gas Storage Report. The report indicated that working gas in storage increased by 111 Bcf from the previous week, compared to analyst consensus of 105 Bcf.

At current levels, stocks are 183 Bcf below the five-year average for this time of the year. In Europe, natural gas prices have started to rebound after the major pullback as demand is set to increase ahead of the winter. The situation in Europe will have a direct impact on U.S. natural gas markets in late November when Freeport LNG restarts operations.

WTI Oil Keeps Moving Higher On China Stimulus Hopes

WTI oil is trying to settle above the $86 level as traders hope that stimulus measures in China will boost demand for oil. While China is not ready to abandon its zero-covid policy, it wants to provide more support to the economy in the remaining months of the year.

Interestingly, the U.S. plan to sell oil from the SPR did not put sustainable pressure on oil markets. However, traders should keep in mind that SPR sales may still have a negative impact on oil prices in the upcoming days.

Silver Rallies As U.S. Dollar Pulls Back

Silver gained strong upside momentum and moved towards the $19.00 level as U.S. Dollar Index declined from 113 to 112.30. It should be noted that silver bulls ignored rising Treasury yields.

In case silver manages to settle above the resistance at $19.00, it will move towards the next resistance level, which is located at the 20 EMA at $19.15. A successful test of the resistance at the 20 EMA will open the way to the test of the 50 EMA at $19.35.

On the support side, the nearest support level for silver is located at $18.80. If silver declines below this level, it will move towards the next support at $18.50. A move below $18.50 will push silver towards the support at $18.30.

Other precious metals have also gained strong upside momentum today. Platinum rallied towards $920, while palladium managed to settle back above the $2050 level. Gold found support near $1625 and moved baack above the $1640 level.

Copper Settled Back Above $3.40

Copper received support at $3.30 and moved back above the $3.40 level amid a broad commodity market rebound. Traders hope that China’s stimulus measures will increase demand for copper.

It remains to be seen whether the current rebound will be sustainable as copper markets will likely need additional positive catalysts to settle above October highs near $3.60.

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