Natural Gas, WTI Oil, Brent Oil – Oil Spikes To Multi-Month Highs

Key Insights

• Natural gas prices stay range-bound. 
• WTI oil tests new highs after EIA report. 
• Brent oil gains ground as U.S. Inflation Rate declines, which provides Fed with an opportunity to start cutting rates in the second half of 2023.

Natural Gas

Natural gas failed to settle above the $2.20 level and pulled back. The current natural gas demand is low, and bulls need additional catalysts to push natural gas prices higher.

From a big picture point of view, natural gas remains stuck in the $2.00 – $2.20 range. Most likely, natural gas will need material catalysts to move out of this range.

R1:$2.20 – R2:$2.35 – R3:$2.60

S1:$2.00 – S2:$1.80 – S3:$1.60

WTI Oil

WTI oil tested new highs after the release of the EIA report, which showed that crude inventories increased by 0.6 million barrels from the previous week. Domestic oil production increased from 12.2 million bpd to 12.3 million bpd.

WTI oil moved out of the recent trading range and has a good chance to gain sustainable momentum. RSI is close to the overbought territory, but there is enough room to gain additional upside momentum in case the right catalysts emerge.

R1:$83.30 – R2:$84.50 – R3:$86.00

S1:$82.00 – S2:$80.00 – S3:$79.10

Brent Oil

Brent oil has also moved out of the recent trading range amid a broad rally in the oil markets. U.S. inflation data provided additional support to Brent oil.

If Brent oil settles above the resistance at $87.80, it will head towards the next resistance level at $89.00. A successful test of this level will push Brent oil towards the resistance at $90.50.

R1:$87.80 – R2:$89.00 – R3:$90.50

S1:$86.70 – S2:$86.00 – S3:$84.00

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