Natural Gas, WTI Oil, Brent Oil – Oil Markets Pull Back Despite Bullish IEA Forecast

Key Insights

• Natural gas managed to settle above the $2.35 level. 
• WTI oil pulled back as China’s economic recovery was less robust than expected. 
• Brent oil settled back below the $75 level. 

Natural Gas

Natural gas continues to move higher as traders bet on reduced gas production. Technical factors are also in play as it looks that natural gas managed to form a bottom.

The nearest significant resistance level for natural gas is located at $2.60. If natural gas climbs above this level, it will head towards the resistance at $2.85. On the support side, a move below $2.35 will push natural gas back towards the $2.20 level.

R1:$2.60 – R2:$2.85 – R3:$3.00

S1:$2.35 – S2:$2.20 – S3:$2.00

WTI Oil

WTI oil pulled back as traders focused on the economic data from China. The country’s Industrial Production increased by 5.6% year-over-year in April, compared to analyst consensus of +10.9%.

If WTI oil declines below the support at $70.30, it will head towards the next support level at $69.20. A move below this level will push WTI oil towards the support at $68.00.

R1:$71.70 – R2:$72.70  – R3:$74.00

S1:$70.30 – S2:$69.20 – S3:$68.00

Brent Oil

Brent oil  moved lower as weak economic data from China offset positive forecasts from IEA. The agency stated that the current oil price downturn ignored the upcoming supply crunch.

In case Brent oil declines below the $74.60 level, it will move towards the next support at $73.70. On the upside, a move above the resistance at $75.50 will open the way to the test of the next resistance at $76.25.

R1:$75.50 – R2:$76.25 – R3:$77.50

S1:$74.60 – S2:$73.70 – S3:$73.00

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