Oil Market Analysis - July 24, 2026
Key Highlights
- Natural gas markets are under pressure ahead of the weekend.
- WTI oil is experiencing a pullback as traders take profits after a strong rally.
- Brent oil has retreated towards the $96.00 level.
Natural Gas Market Overview
Natural gas prices attempted to settle above the $2.95 level but lost momentum, pulling back towards $2.85. The latest EIA report indicated an increase of +32 Bcf in working gas storage, which failed to support prices. If natural gas settles below $2.85, it may head towards the nearest support range of $2.75 - $2.80. A drop below $2.75 could lead to further downside momentum, with the RSI indicating room for movement if catalysts emerge.
WTI Oil Market Analysis
WTI oil is moving lower as traders engage in profit-taking following a strong rally. Reports indicate that mediators from China, Qatar, and Pakistan are attempting to facilitate negotiations between the U.S. and Iran, although neither side has shown a willingness for a ceasefire. The U.S. aims to limit Iran's capacity to attack vessels in the Strait of Hormuz, a critical point in ongoing negotiations. Despite the geopolitical tensions, WTI oil has failed to settle above the resistance level of $91.50 - $92.00, pulling back towards $89.00. If it settles below $89.00, the next support level is at $86.00 - $86.50. Conversely, a successful test of the resistance could push prices towards $96.50 - $97.00.
Brent Oil Market Overview
Brent oil has also seen a decline amid profit-taking, which is considered a healthy correction after a strong rally. The geopolitical landscape remains bullish for oil markets, with ongoing tensions between the U.S. and Iran. The Strait of Hormuz is effectively controlled by Iran, while the Bab al-Mandab Strait is under Houthi control. If Brent oil falls below the support level of $95.00 - $95.50, it may move towards $91.00. For upward momentum, Brent needs to settle above the resistance at $100.00 - $100.50, with potential to reach $105.50 - $106.00 if it surpasses $100.50.
Conclusion
The oil markets are currently facing a mix of profit-taking and geopolitical tensions that could influence future price movements. Traders are advised to monitor key support and resistance levels closely as the situation evolves.