Natural Gas, WTI Oil, Brent Oil – Oil Rebounds Despite Saudi Arabia’s Price Cuts

Key Insights

• Natural gas continues to move lower after the release of the EIA report. 
• WTI oil rebounded after the strong sell-off. 
• Brent oil moved towards the $73.00 level. 

Natural Gas

Natural gas remains under pressure after the release of the EIA report, which indicated that working gas in storage increased by 54 Bcf from the previous week.

If natural gas settles below the support at $2.00, it will head towards the next support level at $1.80. A move below $1.80 will push natural gas towards the support at $1.60.

R1:$2.20 – R2:$2.35 – R3:$2.60

S1:$2.00 – S2:$1.80 – S3:$1.60

WTI Oil

WTI oil  moves higher as traders bet on a rebound after the strong sell-off. According to a recent Bloomberg report, Saudi Arabia cut prices for Asian buyers by 25 cents, but it looks that this move has been already priced in by the oil markets.

A move above the $69.20 level will push WTI oil towards the resistance at $70.30. If WTI oil settles above $70.30, it will head towards the next resistance at $71.70.

R1:$69.20 – R2:$70.30 – R3:$71.70

S1:$68.00 – S2:$67.00 – S3:$65.70

Brent Oil

Brent oil has also moved higher in today’s trading session. At this point, the move looks like a normal rebound after a strong sell-off. Brent oil will likely need additional positive catalysts to gain sustainable momentum.

If Brent oil climbs above $73.00, it will move towards the resistance at $74.60. On the support side, a move below $71.70 will push Brent oil towards the next support at $70.20.

R1:$73.00 – R2:$74.60 – R3:$75.50

S1:$71.70 – S2:$70.20 – S3:$69.25

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