Oil Markets Slide Amid Profit-Taking and Geopolitical Tensions
Natural gas prices are gaining momentum as traders focus on the EIA Weekly Natural Gas Storage Report, which showed a lower-than-expected build. This has provided support to natural gas markets, with stocks currently -32 Bcf less than last year and +185 Bcf above the five-year average for this time of the year.
Natural gas is trying to settle above the resistance level at $2.75, $2.80, which could lead to further gains towards the next resistance level at $3.00, $3.05. However, a move below the $2.70 level would open the way to the test of the support at $2.50, $2.55.
WTI oil has pulled back after recent strikes on Iran, with traders taking profits off the table. The US military forces hit dozens of targets in the country, but it is unclear if this will have a significant impact on oil markets.
Brent oil has also pulled back, testing new highs but losing momentum due to profit-taking and geopolitical developments.