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

Key Insights

• Natural gas declined towards the $2.25 level. 
• WTI oil declined by 2% as demand for riskier assets decreased. 
• Brent oil pulled back towards the support at $80.50.

Natural Gas

Natural gas pulls back as traders react to the recent changes in weather forecasts. Traders expect that demand for natural gas would fall by mid-May.

While the weather forecasts are disappointing for the bulls, natural gas continues to trade at low levels, so it will need material negative catalysts to test the major support at $2.00. On the upside, a move above $2.35 will push natural gas towards the resistance at $2.60.

R1:$2.35 – R2:$2.60 – R3:$2.80

S1:$2.20 – S2:$2.00 – S3:$1.80

WTI Oil

WTI oil pulled back towards the $77 level as demand for riskier assets declined amid recession worries. The rebound of the U.S. dollar served as an additional bearish catalyst for oil markets.

In case WTI oil settles below the $77.00 level, it will move towards the support at $75.90. A successful test of this support level will open the way to the test of the support at $74.80.

R1:$78.30 – R2:$79.10 – R3:$80.00

S1:$77.00 – S2:$75.90 – S3:$74.80

Brent Oil

Brent oil has also found itself under material pressure in today’s trading session. As a result, Brent oil tested multi-week lows.

In case Brent oil declines below the support at $80.50, it will head towards the next support at $79.15. A move below this level will push Brent oil towards the support at $78.00.

R1:$81.70 – R2:$83.10 – R3:$84.00

S1:$80.50 – S2:$79.15 – S3:$78.00

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