WTI falls sharply while gold and US natural gas prices also drop
Outlook on WTI, gold and natural gas as investors worry about global demand.
WTI drops to three-month low on huge inventories build
WTI fell by over 4% and dropped to a three-month low, so far to $76.46, amid concerns regarding future demand following weak China data and after the US Energy Information Administration (EIA) showed that US crude oil inventories rose by almost 12 million barrels last week, the biggest increase since the beginning of the year. On the demand side, the EIA also expects total petroleum consumption to decline by 300,000 barrels per day (bpd) this year versus a previously forecast 100,000 bpd increase. WTI now trades below its $77.60 per barrel August low and its 200-day simple moving average (SMA) at $78.00 which represent minor resistance ahead of the $81.21 early October low. A fall through Wednesday’s $76.46 low would put the May high at $74.70 back on the cards.
Gold price retreats further from last week’s high
The gold price continues to gradually slide and on Tuesday nearly revisited its September high and late October $1,953 per barrel low by dropping to $1,957. Further down lies the late September high at $1,947 which may also act as support. Immediate downside pressure should be maintained while no rise above Tuesday’s high at $1,977 is seen. Slightly below it minor resistance can be made out around the $1,970 early November low. Above $1,977 lies minor resistance around the 2 November high at $1,991.
US natural gas continues to slide from last week’s ten-month high
US natural gas futures reached a ten-month high at $3.646 on Friday, marginally above their early October high, before they slid back towards their late October low at $3.172 and the September-to-November uptrend line at $3.157. Further down support can be spotted between the mid-to-late September highs at $3.024 to $3.021 while minor resistance sits at the $3.349 late October low.
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