WTI Tests New Highs as traders digest tight supply

The price of natural gas tried to climb above $2.85. Trading speculation that Saudi Arabia and Russia might extend their voluntary production restrictions caused WTI oil to rise. The price of Brent oil increased as the oil markets as a whole rallied.

As traders react to the EIA report, which revealed that working gas in storage grew by 32 Bcf from the previous week, natural gas keeps trying to settle above the barrier at $2.80 to $2.85.

From a broad perspective, natural gas prices are still range-bound, and it is unclear whether bulls will find sufficient catalysts to raise prices over $2.85.

As traders anticipate Saudi Arabia extending its voluntary production cut of 1 million bpd into October, WTI oil appears to test fresh highs. Russia’s production cuts are also anticipated to continue.

WTI oil will go towards the resistance of $86.00-$87.30 if it remains above the $81.75 mark. The $84.85 highs from August may possibly present some resistance for WTI oil.

As traders pay attention to limited supplies and production cuts, Brent oil is attempting to settle above the resistance of $85.10 to $86.00. Oil markets received significant support from the most recent EIA report, which revealed that crude stocks had decreased by 10.6 million barrels. Brent oil will rise towards the barrier at $88.80 to $90.00 if it settles above the $86.00 mark.