Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Pulls Back As Angola Exits OPEC

Key Insights

• Natural gas tested the $2.60 level after the release of EIA data. 
• WTI oil pulled back on profit-taking. 
• Brent oil moved lower as tensions in Red Sea did not lead to significant oil supply disruptions. 

Natural Gas

Natural gas rallied as traders reacted to the EIA report, which showed that working gas in storage declined by 87 Bcf from the previous week. Traders focused on the larger-than-expected inventory draw.

A successful test of the resistance at $2.60 – $2.65 will open the way to the test of the next resistance level at $2.80 – $2.85.

WTI Oil

WTI oil is losing some ground as traders continue to take profits after the recent rebound, which was driven by fears about the safety of supply routes in Red Sea. Angola decided to leave OPEC, which served as a negative catalyst for oil markets.

In case WTI oil manages to settle back below the $73.00 level, it may gain additional downside momentum.

Brent Oil

Brent oil is also moving lower in today’s trading session. At this point, the attacks on ships in Red Sea did not lead to any material oil supply disruption. In this light, it remains to be seen whether the situation in the Middle East will continue to provide support to oil prices.

From the technical point of view, the current pullback looks normal after the strong rebound from recent lows.

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