Brent crude oil price remains bid while silver, US natural gas prices slip
Brent crude oil price remains bid amid depleted inventories while silver, US natural gas prices slip despite weakening US dollar.
Brent crude oil price rises on inventory drop
The Brent crude oil front month futures price rose by over 2% on Wednesday amid much lower than expected US EIA inventories with the lower end of the 72.70-to-73.86 price gap between Friday's low and Monday's high currently acting as resistance. If filled, the upper October downtrend channel resistance line at 74.16 may be revisited alongside the 55-day simple moving average (SMA) at 74.76.
Key support remains to be seen between the September and current October lows at 70.31-to-68.53.
Spot silver price forms minor top
The spot silver price’s run up to last week’s $34.87 per troy ounce high, to levels last traded in October 2012, has been followed by a small pullback to Friday’s $33.09 low from where another upside attempt has been made. This seems to have run out of steam at Tuesday’s $34.55 high, though, with further downside being on the cards, now that the accelerated October uptrend line is beginning to give way. A fall through the 25 October low at $33.09 could kickstart a protracted consolidation phase with the May peak at $32.51 being revisited.
US natural gas prices remain under pressure
The descent from last week’s front-month US natural gas futures 3.081 high is ongoing with the August-to-October tentative uptrend line at 2.774 being eyed. A fall through it would likely engage the October low at 2.636.
Minor resistance can be seen at Friday’s 2.944 low and more significant resistance between the current October highs at 3.081-to-3.141.
This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
React to volatility on commodity markets
Trade commodity futures, as well as 27 commodity markets with no fixed expiries.
- Wide range of popular and niche metals, energies and softs
- Spreads from 0.3 pts on Spot Gold, 2 pts on Spot Silver and 2.8 pts on Oil
- View continuous charting, backdated for up to five years
See opportunity on a commodity?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See opportunity on a commodity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Analyse and deal seamlessly on fast, intuitive charts
- Get spreads from just 0.3 points on Spot Gold
- See and react to breaking news in-platform
See opportunity on a commodity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
