Natural Gas remains under strong pressure as traders stay focused on yesterday’s EIA Weekly Natural Gas Storage Report, which indicated that working gas in storage increased by +61 Bcf from the previous week. The storage build exceeded analyst estimates and served as a major bearish catalyst for natural gas markets.
From the technical point of view, natural gas settled below the support level at $3.00 – $3.05 and is trying to settle below the $2.90 level. If successful, the next support is located in the $2.75 – $2.80 range. The RSI is in the moderate territory, leaving room for additional downside momentum in the near term.
Further pressure in natural gas comes from the storage data and ongoing price action. A break below the $2.90 level would open the way to the $2.75 – $2.80 area, while a reversal would need to rise above the $3.00 – $3.05 area to gain upside momentum.
WTI oil retreated as traders reacted to comments from President Trump about Iran. He said Iran asked the U.S. to continue negotiations and that the ceasefire was over. The United States revoked a sanctions waiver that allowed Iran to sell oil in global markets, and Trump has threatened to impose a naval blockade on Iranian ports. Traders viewed these remarks as bearish for oil, though both sides may continue to clash as the ceasefire ends. Iran attacked several vessels on an alternative route in the Strait of Hormuz, and most shipowners will likely be cautious about routes through the Strait.
In addition, the UAE boosted its oil production to all-time highs after leaving OPEC and OPEC+ to gain market share.
Currently, WTI is trying to settle below the support level at $70.50 – $71.00. If this is breached, the next support is around $67.00 – $67.50. A move below $67.00 would indicate further downside momentum. On the upside, staying above $70.50 – $71.00 provides a chance to gain momentum; a climb above the $73.00 level would target resistance at $74.50 – $75.00.
Brent oil moved lower as traders bet on de-escalation in the Middle East, though traders were not ready for big moves ahead of the weekend. If Brent declines below the $75.00 level, it could head toward the support, which is located in the $72.00 – $72.50 range. A move below the $72.00 level will push Brent toward the psychologically important $72.00 level.
On the upside, a successful test of the resistance at $77.00 – $77.50 will push Brent oil toward the next resistance at $81.00 – $81.50.
The combination of the storage build and geopolitical tensions is reinforcing bearish sentiment in energy markets. Natural gas remains under pressure, while crude benchmarks show limited upside momentum ahead of the weekend.
RSI being in the moderate range suggests there is still room for price movement lower in the near term, with clear thresholds at key supports and resistances guiding trader decisions.
