Natural Gas, WTI Oil, Brent Oil – WTI Oil Tests The $70 Level

Key Insights

• Natural gas pulled back amid profit-taking. 
• WTI oil declined towards the $70 level. 
• Brent oil settled below the $76 level. 

Natural Gas

Natural gas pulled back after facing strong resistance near multi-month highs. The move was driven by profit-taking as weather forecasts remained somewhat bullish.

Natural gas will likely try to settle in the $2.40 – $2.60 range before making another attempt to climb above the $2.70 level.

WTI Oil

WTI oil pulled back as traders reacted to China’s decision to cut longer-term rates. The 5-year loan prime rate was cut from 4.3% to 4.2%, which was in line with analyst expectations. However, traders wanted to see a more aggressive cut.

From the technical point of view, WTI oil is trying to get below the $70 level. A successful test of this level will push WTI oil towards June lows.

Brent Oil

Brent oil has also moved lower as traders focused on the news from China.

RSI remains in the moderate territory, so there is enough room to gain additional momentum.  A move below the $74.70 level will push Brent oil towards the support in the $71.55 – $72.05 area.

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