Natural Gas, WTI Oil, Brent Oil – Oil Pulls Back Despite Production Cuts

Key Insights

• Natural gas stays range-bound ahead of the holiday. 
• WTI oil pulled back towards the $70 level. 
• Brent oil moved below the $75 level. 

Natural Gas

Natural gas pulls back as traders take profits near multi-month highs. The weather remains hot, which may provide additional support to the market after the holiday.

The technical picture stays unchanged as natural gas remains stuck in the $2.60 – $2.85 range.

WTI Oil

WTI oil pulled back from session highs despite additional production cuts from Saudi Arabia and Russia. Saudi Arabia would extend its production cuts of one million bpd for one month. Russia would cut its oil exports by an additional 500,000 bpd in August.

From the technical point of view, WTI oil failed to settle above the 50 MA despite the bullish news. At the same time, it should be noted that markets are not ready for big moves ahead of U.S. holiday.

Brent Oil

Brent oil has also pulled back from today’s highs. Traders focused on the disappointing Manufacturing PMI reports which indicated that the manufacturing sector remained under pressure in developed economies.

Brent oil remains range-bound. However, bears may put more pressure on the market in case Brent oil fails to settle above the 50 MA in the upcoming trading sessions.

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