Natural Gas, WTI Oil, Brent Oil – Oil Dives 3% Amid Recession Worries

Key Insights

• Natural gas is volatile ahead of May futures expiration. 
• Oil markets retreat as traders focus on recession risks. 
• The price of oil has reached levels that were seen before OPEC+ decided to cut production. 

Natural Gas

Natural gas pulled back ahead of May futures expiration. Choppy trading is usual at such times.

From the technical point of view, natural gas needs to get out of the recent trading range to have a chance to gain sustainable momentum.

R1:$2.35 – R2:$2.60 – R3:$2.80

S1:$2.20 – S2:$2.00 – S3:$1.80

WTI Oil

WTI oil found itself under material pressure despite bullish EIA report. Traders focused on recession risks as the recent report from First Republic Bank showed that the banking crisis in the U.S. is not over.

If WTI oil settles below the support at $74.80, it will move towards the next support level at $73.80. A successful test of this level will push WTI oil towards the support at $72.70.

R1:$75.90 – R2:$77.00 – R3:$78.30

S1:$74.80 – S2:$73.80 – S3:$72.70

Brent Oil

Brent oil is down by roughly 3% today amid recession worries. From a big picture point of view, oil markets have erased the gap that emerged after OPEC+ decided to cut production.

A move below the $78 level will push Brent oil towards the support at $77.20. In case Brent oil gets below $77.20, it will head towards the next support at $76.20.

R1:$79.15 – R2:$80.50 – R3:$81.70

S1:$78.00 – S2:$77.20 – S3:$76.20

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