Natural Gas, WTI Oil, Brent Oil – Oil Markets Dive 3%

Key Insights

• Natural gas declined below the $2.50 level on expectations of lower demand in the next two weeks. 
• WTI oil settled below the $80 level as Fitch dowgraded U.S. credit rating.
• Brent oil moved below the $84 level.

Natural Gas

Natural gas pulled back below the $2.50 level as traders focused on forecasts of reduced demand over the next two weeks.

Natural gas has recently settled below the 50 MA, which is a bearish sign. Currently, it is moving towards the support in the $2.35 – $2.40 range.

WTI Oil

WTI oil declined below the $80 level as traders reacted to U.S. debt downgrade and EIA report, which showed that crude inventories declined by 17 million barrels.

In case WTI oil settles below the $79.00 level, it will move towards the support in the $76.80 – $77.30 range.

Brent Oil

Brent oil has also gained strong downside momentum in today’s trading session. U.S. debt downgrade served as the main negative catalyst for oil markets today.

At this point, it looks that the pullback was also driven by profit-taking, as RSI was in the overbought territory after the recent rally. If Brent oil settles below the $81.70 level, it will have a chance to gain additional downside momentum.

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