Natural Gas, WTI Oil, Brent Oil – Oil Markets Rally As Russia Cuts Production

Key Insights

• Natural gas markets are finally trying to form a bottom after the multi-month sell-off. 
• Oil markets rallied as Russia announced that it would cut production by 500,000 bpd in March. 
• According to recent reports, OPEC+ will not adjust its quotas after Russia’s move.

Natural Gas

Natural gas is trading near the $2.50 level as the market is trying to rebound after the multi-month sell-off. At this point, it looks that natural gas prices have finally found some support in the $2.35 – $2.50 level. However, natural gas will need additional positive catalysts to gain sustainable upside momentum.

WTI Oil

WTI oil moved towards the $80 level after Russia announced that it would cut production by 500,000 bpd in March. According to Russia’s Deputy Prime Minister Alexander Novak, Russia was selling the full volume of oil it produced, but the country was willing to restore “market relations”. Russia reiterated that it would not sell oil to those who participate in the price cap scheme.

Brent Oil

Brent oil has also gained strong upside momentum after Russia’s decision to cut production. According to recent reports, OPEC+ does not plan to adjust its quotas after Russia’s move, which is bullish for oil markets.

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