Natural Gas, WTI Oil, Brent Oil – Oil Markets Pull Back On Recession Worries

Key Insights

• Natural gas retreats after EIA report. 
• WTI oil moved below the $83 level. 
• Brent oil declines amid a broad pullback in the oil markets. 

Natural Gas

Natural gas pulled back towards recent lows after the release of the EIA Weekly Natural Gas Storage Report. The report indicated that working gas in storage increased by 25 Bcf from the previous week, compared to analyst consensus of +28 Bcf.

The technical picture remains unchanged as natural gas is stuck in the $2.00 – $2.20 range. A move out of this range will provide natural gas with an opportunity to gain additional momentum.

R1:$2.20 – R2:$2.35 – R3:$2.60

S1:$2.00 – S2:$1.80 – S3:$1.60

WTI Oil

WTI oil pulled back as OPEC’s monthly report highlighted risks to summer oil demand. Put simply, today’s pullback was triggered by recession worries.

From the technical point of view, the pullback looks natural after the recent rally. If WTI oil manages to stay above the $82 level, it will have a good chance to gain additional upside momentum in the upcoming trading sessions.

R1:$83.30 – R2:$84.50 – R3:$86.00

S1:$82.00 – S2:$80.00 – S3:$79.10

Brent Oil

Brent oil has also moved lower as traders focused on recession worries. Interestingly, U.S. dollar’s pullback did not provide support to oil markets today.

Brent oil needs to stay above the $84 – 86 range to have a chance to gain upside momentum in the near term.

R1:$86.70 – R2:$87.80 – R3:$89.00

S1:$86.00 – S2:$84.00 – S3:$83.10

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