Natural Gas, WTI Oil, Brent Oil – Oil Soars As China Cuts Short-Term Rates

Key Insights

• Natural gas gained ground due to hotter weather forecasts. 
• WTI oil rebounded from recent lows as China cut short-term rates. 
• Brent oil settled back above the $74 level. 

Natural Gas

Natural gas moved higher as traders reacted to hotter weather forecasts. Hotter weather would lead to higher demand for natural gas.

A move above the $2.35 level will push natural gas towards the resistance at $2.60. On the support side, natural gas needs to settle below $2.20 to have a chance to gain sustainable downside momentum.

R1:$2.35 – R2:$2.60 – R3:$2.85

S1:$2.20 – S2:$2.00 – S3:$1.80

WTI Oil

WTI oil rebounds as China lowered its short-term lending rate to provide additional support to the economy.

A successful test of the $70.30 level will push WTI oil towards the resistance at $71.70. In case WTI oil climbs above $71.70, it will head towards the $73.20 level.

R1:$70.30 – R2:$71.70 – R3:$73.20

S1:$69.20 – S2:$68.00 – S3:$66.90

Brent Oil

Brent oil has also gained momentum as traders bet that China will soon reveal additional measures to boost its economy.

If Brent oil climbs above $74.60, it will head towards the resistance at $75.50. A move above this level will open the way to the test of the next resistance at $76.50.

R1:$74.60 – R2:$75.50 – R3:$76.50

S1:$73.50 – S2:$72.50 – S3:$71.40

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