Natural Gas, WTI Oil, Brent Oil Forecasts – Brent Oil Dives 9% Amid Signs Indicating Iran Is Ready For A Deal

Natural Gas Stays Range-Bound

Natural gas is swinging between gains and losses as traders wait for additional catalysts that could push prices out of the current trading range.

From the technical point of view, natural gas is stuck between the support level at $2.75 – $2.80 and the resistance level at $3.00 – $3.05. If natural gas declines below the $2.75 level, it will head towards the next support, which is located in the $2.75 – $2.80 range.

On the upside, a move above the $3.05 level will push natural gas towards the $3.25 level. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

WTI Oil Is Losing Ground As Traders Take Profits After Pezeshkian’s Comments

WTI oil pulled back as traders reacted to the comments from Iran. The country’s President Masoud Pezeshkian said that Iran was ready to stop the war but demanded guarantees. Traders have interpreted his comments as a sign that Iran was seriously negotiating with the U.S.

Previously, Iran demanded payment of reparations from U.S. and Israel, but this demand was not explicitly reiterated by Pezeshkian. Everyone understands that such demands are meant to be translated to the local public to boost morale and should not be taken seriously.

Iranian Foreign Minister Abbas Araghchi said that U.S. and Iran talks looked like an exchange of messages, and it could not be counted as “negotiations”. He added that Iran did not send a response to U.S. proposals.

According to recent reports, the number of ships going through the Strait of Hormuz has started to rise slowly, but the key route remains de-facto closed for most vessels.

Interestingly, U.S. President Donald Trump sad that “other nations” could reopen the Strait of Hormuz. According to Trump, the Iran war could end soon.

It should be noted that WTI oil did not suffer a major sell-off as traders remained cautious. The key question is whether Iranian President Masoud Pezeshkian has full control of his armed forces and, more importantly, Revolutionary Guards. That said, the market is ready to react to any signals that could point to a potential deal.

In case WTI oil settles back below the psychologically important $100 level, it will head towards the support level at $97.00 – $97.50. On the upside, WTI oil needs to climb above recent highs near the $107.00 level to have a chance to gain sustainable upside momentum in the near term.

Brent Oil Retreats As Traders Bet That Middle East War Could End Soon

Brent oil suffered a strong sell-off as the spread with WTI oil collapsed. Traders rushed to take profits off the table amid signs that U.S. and Iran may start serious negotiations.

Currently, Brent oil attempts to settle below the support level at $103.00 – $103.50. In case this attempt is successful, Brent oil will move towards the next support, which is located in the $97.00 – $97.50 range. A move below the $97.00 level will push Brent oil towards the $92.00 level.

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