Oil Rebounds on Supply Risks, Natural Gas Edges Higher
Natural gas prices edged higher on Wednesday as traders focused on supply risks following the release of the EIA Weekly Natural Gas Storage Report. The report showed that working gas in storage increased by +44 Bcf from the previous week, below analyst forecasts of +49 Bcf.
At current levels, stocks are -122 Bcf less than last year and +118 Bcf above the five-year average for this time of the year. Natural gas struggled to settle above the $2.95 level but pulled back after making an attempt.
The market remains cautious due to supply risks, with traders waiting on news from the Middle East regarding the damaged pipeline in Saudi Arabia. Recent reports indicated that China is putting pressure on Iran to rein in Houthis, who have achieved major success against forces of the official government and mostly control the Bab-el-Mandeb Strait.
WTI oil rebounded from session lows as traders evaluated supply risks, with prices trying to settle back above the resistance level at $102.50, $103.00. Brent oil also rebounded, attempting to settle back above $105.00 as market remains worried about the closure of the Strait of Hormuz.