Natural Gas, WTI Oil, Brent Oil – Oil Markets Gain Ground As Traders Bet On Rising Demand In China

Key Insights

• Natural gas is moving higher at the start of the week. 
• WTI oil settled above the $78.50 level. 
• Brent oil moved above $82 as traders focused on rising demand in China.

Natural Gas

Natural gas is moving higher as current demand for natural gas remains strong. However, weather forecasts imply wekaer demand at the beginning of May, so it remains to be seen whether natural gas will be able to gain sustainable upside momentum.

If natural gas climbs above the $2.35 level, it will move towards the next resistance at $2.60. On the support side, a move below $2.20 will push natural gas back towards the $2.00 level.

R1:$2.35 – R2:$2.60 – R3:$2.80

S1:$2.20 – S2:$2.00 – S3:$1.80

WTI Oil

WTI oil  continues to rebound after the recent pullback. Traders bet that rising demand in China will provide sufficient support to oil prices.

If WTI oil settles above the resistance at $79.10, it will head towards the psychologically important $80.00 level. On the support side, a move below the support at $78.30 will push WTI oil towards the next support at $77.00.

R1:$79.10 – R2:$80.00 – R3:$82.00

S1:$78.30 – S2:$77.00 – S3:$75.90

Brent Oil

Brent oil has also managed to gain material upside momentum in today’s trading session as traders were optimistic about China’s demand for oil. Weaker dollar served as an additional bullish catalyst for oil markets.

If Brent oil moves above the $83.10 level, it will head towards the resistance at $84.00. A successful test of this level will push Brent oil towards the resistance at $86.00.

R1:$83.10 – R2:$84.00 – R3:$86.00

S1:$81.70 – S2:$80.50 – S3:$79.15

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