The oil markets faced a significant decline on Friday, with both Brent oil and WTI oil experiencing substantial drops ahead of the weekend. Brent oil faced strong pressure amid a broad sell-off, with its price dropping below the $75.00 level. If Brent oil settles below $74.50, analysts expect it will likely move towards the support level at $71.00 – $71.50.
WTI oil also pulled back, with concerns over a weaker-than-expected U.S. Services PMI report leading to worries about a potential slowdown in the U.S. economy. Should WTI oil settle below the $70.00 level, it is expected to head towards the next support level in the $67.00 – $67.50 range. In contrast, natural gas prices moved higher, supported by changes in weather forecasts.
There is currently high demand for natural gas, which is considered bullish for the market.
crude market faces significant decline
If natural gas manages to settle above the resistance at $4.25 – $4.30, analysts predict it will head towards the next resistance level at $4.55 – $4.60.
The fluctuations in natural gas and oil prices reflect the dynamic market conditions and the impact of economic indicators on trader sentiment. As weather forecasts change and economic reports vary, these commodities are closely watched for price movements. The recent decline in oil prices comes as crude oil traders have been reducing their exposure to contracts for the commodity, signaling a shift in market sentiment.
Net-long bets on West Texas Intermediate (WTI) fell for the fourth consecutive week, hitting their lowest level since last October, according to data from the Intercontinental Exchange and the U.S. Commodity Futures Trading Commission. This trend is driven by both a decrease in net-long positions and an increase in net-short ones. Factors such as a potential peace deal in Ukraine, the resumption of oil exports from Kurdistan, and tariff-related uncertainties are contributing to diminished optimism among traders.
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