Natural Gas, WTI Oil, Brent Oil – Oil Markets Plunge Amid Recession Worries

Key Insights

• Natural gas tests support at $2.20 as traders react to the record U.S. gas output. 
• WTI oil and Brent oil are down by more than 5% as traders fear that demand for oil will decline. 
• Yellen’s comments about a potential U.S. default in June served as a significant negative catalyst for oil markets. 

Natural Gas

Natural gas pulled back as traders reacted to the record-breaking US gas output. The weather forecasts remain uninspiring, which is bearish for natural gas.

If natural gas settles below the support at $2.20, it will head towards the next support level at $2.00. A move below this level will push natural gas towards the support at $1.80.

R1:$2.35 – R2:$2.60 – R3:$2.80

S1:$2.20 – S2:$2.00 – S3:$1.80

WTI Oil

WTI oil  tested new lows amid concerns about the banking crisis in the U.S. In addition, Yellen said that U.S. may be unlikely to meet its payment obligations in June if the debt ceiling is not raised, which served as a bearish catalyst for oil markets.

In case WTI oil declines below the support at $71.70, it will mvoe towards the next support level at $70.30. A successful test of the support at $70.30 will push WTI oil towards the support at $69.20.

R1:$72.70 – R2:$73.80 – R3:$74.80

S1:$71.70 – S2:$70.30 – S3:$69.20

Brent Oil

Brent oil plunged 5% amid a broad sell-off in the oil markets. At this point, OPEC+ production cuts did not provide sustainable support to oil prices as traders focused on recession worries.

If Brent oil settles below $75.50, it will move towards the support at $74.60. On the upside, a move above $76.20 will open the way to the test of the resistance at $77.20.

R1:$76.20 – R2:$77.20 – R3:$78.00

S1:$75.50 – S2:$74.60 – S3:$73.00

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