Natural Gas, WTI Oil, Brent Oil – Oil Markets Continue To Consolidate

Key Insights

• Natural gas remains stuck near recent lows amid a lack of upside catalysts. 
• WTI oil is trading above the $80 level after the EIA report. 
• Brent oil settled near the $85 level. 

Natural Gas

Natural gas continues to trade near recent lows amid a lack of positive catalysts. Futures prices exceed spot prices so traders believe that natural gas will ultimately move higher. However, the near-term weather forecasts remain uninspiring.

Natural gas managed to stabilize in the $2.00 – $2.20 range and may form a bottom in this area. It should be noted that a move below the $2.00 level may lead to a sell-off.

R1:$2.20 – R2:$2.35 – R3:$2.60

S1:$2.00 – S2:$1.80 – S3:$1.60

WTI Oil

WTI oil is trading above the $80 level after the release of the EIA report, which indicated that crude inventories declined by 3.7 million barrels. Domestic oil production remained unchanged at 12.2 million bpd.

WTI oil continues to consolidate after the strong rally, which was triggered by the OPEC+ decision to cut production. In case WTI oil manages to stay above the key $80 level, it will have a good chance to gain additional upside momentum.

R1:$82.00 – R2:$83.30 – R3:$84.50

S1:$80.00 – S2:$79.10 – S3:$78.00

Brent Oil

Brent oil settled near the $85.00 level as traders continued to take profits after the recent rally. Saudi Arabia raised May Arab Light crude oil prices for Asia, but this decision did not provide additional support to oil markets as consolidation continued.

Brent oil needs to get above the recent highs near the $86.00 level to continue its rebound. On the support side, a move below the $84.00 level will open the way to the test of the support at $83.10.

R1:$86.00 – R2:$86.70 – R3:$87.80

S1:$84.00 – S2:$83.10 – S3:$82.40

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