Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Retreats As U.S. Gasoline Stocks Rise By 10.9 Million Barrels

Key Insights

• Natural gas tested resistance at $2.80 – $2.85 as traders reacted to bullish changes in weather forecasts.
• WTI oil pulled back after the release of bearish EIA report. 
• Brent oil pulled back towards $77.50.

Natural Gas

Natural gas rallies as traders focus on cold weather forecasts. Today, traders also had a chance to take a look at EIA report, which showed that working gas in storage declined by 14 Bcf from the previous week.

In case natural gas settles above the resistance at $2.80 – $2.85, it will move towards the next resistance level, which is located in the $3.00 – $3.05 range.

WTI Oil

WTI oil pulls back as traders react to the EIA Weekly Petroleum Status Report, which indicated that crude inventories declined by 5.5 million barrels from the previous week. Domestic production declined from 13.3 million bpd to 13.2 million bpd, while Strategic Petroleum Reserve increased from 353.3 million barrels to 354.4 million barrels. Gasoline inventories increased by as much as 10.9 million barrels, which served as the key bearish catalyst for oil markets.

From the technical point of view, WTI oil failed to settle above the resistance at $73.00 – $74.00, which is bad news for the bulls.

Brent Oil

Brent oil is also moving lower as traders focus on the bearish EIA report.

If Brent oil settles below $77.50, it will head towards the support at $71.75 – $73.00.

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