Natural Gas, WTI Oil, Brent Oil – China Demand Hopes Push Oil Markets Higher

Key Insights

• Natural gas remains under strong pressure due to warm weather. 
• WTI oil is trying to settle above the $75 level on China demand hopes. 
• Brent oil managed to climb above the psychologically important $80 level. 

Natural Gas

Natural gas declined towards multi-month lows as traders focused on disappointing weather forecasts. The warm weather is expected to hold in the upcoming days, which is bearish for natural gas. In case natural gas settles below multi-month lows at $3.52, it will move towards the support level at $3.35.

WTI Oil

WTI oil is moving higher as traders bet on the positive impact of China’s reopening. While China faced significant problems on the coronavirus front after the country started to reopen its economy, the political decision to eliminate all barriers has been already made. Thus, China’s demand for oil will increase in the upcoming months, providing support to oil prices.

Brent Oil

Brent oil is currently trying to settle back above the $80 level. The recent reports, which indicated that Russia’s Urals oil was selling at half the price of Brent oil, did not put any material pressure on the market. It remains to be seen whether these reports reflected the real situation. In case Russia decides to cut its oil production in order to cut the discount on its oil, Brent oil will get more support.

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