Natural Gas, WTI Oil, Brent Oil – Oil Dives 4.8% As Goldman Sachs Cuts Price Forecasts

Key Insights

• Natural gas pulls back as demand remains at low levels. 
• WTI oil retreats as traders focus on the revised forecasts from Goldman Sachs. 
• Brent oil tests multi-week lows. 

Natural Gas

Natural gas prices are moving lower as maintenance work at LNG export plants reduces demand for natural gas.

Meanwhile, the technical picture remains unchanged as natural gas is stuck in the $2.20 – $2.35 range.

R1:$2.35 – R2:$2.60 – R3:$2.85

S1:$2.20 – S2:$2.00 – S3:$1.80

WTI Oil

WTI oil  is under strong pressure as Goldman Sachs cut its WTI forecast for December from $89 to $81. Goldman Sachs points to strong supply flows from Iran and Russia as the key reason for the forecast revision.

A move below the $66.90 level will push WTI oil towards the support at $65.75. If WTI oil settles below $65.75, it will head towards the $64.40 level.

R1:$68.00 – R2:$69.20 – R3:$70.30

S1:$66.90 – S2:$65.75 – S3:$64.40

Brent Oil

Brent oil  gained strong downside momentum amid a broad sell-off in the oil markets. Traders also want to reduce their risks ahead of tomorrow’s OPEC and IEA reports.

If Brent oil declines below $71.40, it will move towards the support at $70.20. A successful test of this level will push Brent oil towards the $69.25 level.

R1:$72.50 – R2:$73.50 – R3:$74.60

S1:$71.40 – S2:$70.20 – S3:$69.25

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