Disappointing EU PMI data raise concerns on weaker oil demand

Analysts see that disappointing PMI data from the Eurozone raise worries about weaker oil demand. Natural gas is moving higher as traders prepare for colder weather.

Trading at $83.42 per barrel, WTI oil is losing ground amid demand worries. Brent oil pulled back towards the $87.00 level.

Natural gas is trying to gain upside momentum as traders focus on the bullish changes in weather forecasts. In case natural gas climbs above the resistance at $3.00 – $3.05, it will move back towards October highs at $3.45.

WTI oil is under considerable pressure as traders react to the disappointing PMI reports from Europe. Traders worry that EU demand for oil will be weak.

RSI remains in the moderate territory, so there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

Brent oil declined towards the $87.00 level as traders focused on the problems of the European economy. While the current market sentiment is bearish, traders should keep a close eye on the developments in the Middle East, which may raise the risk premium for oil.