WTI Tests $84.75 Resistance as Brent Recovery Holds Above $85.68

Oil demand has softened. Higher prices spurred some fuel switching, and a sluggish industrial sector weighed on product consumption. Seasonal demand is picking up in the Northern Hemisphere, and pent-up activity should begin to flow, though the pace remains uncertain.

Natural gas demand fell sharply in the first half of the year. Conservation efforts and switching to coal in Asia reduced consumption, and imports from Qatar and the UAE were constrained. European gas demand was also low because of higher renewable output and elevated prices. The US market was shielded by high production and comfortable storage levels, with ample inventories limiting upward pressure. US gas demand is forecast to fall slightly in 2024, and the global outlook also points to a marginal decline.

For WTI, resistance sits at $84.75, followed by $87.66 and $90.60. Initial support is at $83.30, with $81.61 and $78.27 marking stronger zones. The outlook stays cautiously bullish as long as price holds above $83.30. A break above $84.75 would suggest a strengthening recovery toward $87.66. A move below $83.30 could signal a return toward $81.61.

Brent resistance levels are at $88.81, then $91.33 and $93.91. Key support is at $85.68 and $80.63. The short-term outlook remains positive as long as price stays above $85.68. A move above $88.81 would signal a strengthening rally toward $91.33. A break below $85.68 would point back toward $80.63.

Natural gas resistance is at $2.756, followed by $2.816 and $2.897. Support below the current bounce zone is at $2.693, then $2.648 and $2.590. Sentiment stays negative as long as price remains below $2.756. A break above that level would open the path to $2.816. A fall below $2.693 could lead to a test of $2.648 and possibly $2.590.