Natural Gas, WTI Oil, Brent Oil – Oil Markets Remain Under Pressure After EIA Report

Key Insights

• Natural gas flows to Freeport LNG plant drop.
• Crude inventories decline by 1.7 million barrels. 
• Domestic oil production decreases to 12.2 million bpd. 

Natural Gas

Natural gas settled below the 20 EMA as traders reacted to the declining amount of gas flowing to Freeport LNG’s export plant. There were no material changes in weather forecasts, so traders will wait for catalysts from tomorrow’s EIA report.

WTI Oil

WTI oil settled below the $77 level after the release of the EIA report. The report indicated that crude inventories declined by 1.7 million barrels, compared to analyst consensus of +0.4 million barrels. Total motor gasoline inventories declined by 1.1 million barrels. Domestic oil production decreased from 12.3 million bpd to 12.2 million bpd. The report did not provide support to oil markets as traders remained focused on the recent changes in Fed policy outlook.

Brent Oil

Brent oil settled below the $83 level as traders were focused on a more hawkish Fed after Powell’s comments. However, it remains to be seen whether the pullback will be sustainable as China’s demand continues to grow.

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