Natural Gas, WTI Oil, Brent Oil Forecasts – Brent Oil Tests New Highs

Natural Gas Made An Attempt To Settle Above $2.80

Natural gas remained stuck near resistance at $2.75 – $2.80 as traders were not ready for big moves ahead of the weekend. Weather updates will likely serve as the key driver for natural gas markets on Monday.

In case natural gas climbs above the $2.80 level, it will gain additional upside momentum and head towards the 50 MA at $2.96. A move above the 50 MA will open the way to the test of the resistance level at $3.00 – $3.05.

On the support side, natural gas needs to settle below the $2.70 level to have a chance to gain downside momentum in the near term. In this case, natural gas will move towards August lows near the $2.62 level.

WTI Oil Gains Ground As Traders Wait For U.S. Plan On Iran

WTI oil continues to move higher amid no signs of progress in the Middle East. U.S. is expected to release the details of Iran’s economic isolation plan on Monday.

Interestingly, Iran’s President Masoud Pezeshkian said that it would be better to end the war. According to Pezeshkian, Iran has the power and the whole world acknowledges Iran’s victory. Obviously, Pezeshkian’s statements about “victory” are meant to calm internal public, which is believed to be rather hawkish.

Despite holding the President title, Pezeshkian does not have the final say on Iran’s foreign policy. The country is controlled by Islamic Revolutionary Guard Corps (IRGC), whose role has significantly increased since the start of the war. Analysts believe that IRGC will maintain a hawkish position in the near term, which means that the Strait of Hormuz would remain closed despite sanctions and naval blockade of Iranian ports.

As a result, traders bet that the situation in physical markets will continue to deteriorate. Global oil reserves are falling at a robust pace as countries try to prevent oil prices from going above the $100.00 level. However, their attempts would yield no results in case the Strait of Hormuz is not reopened.

From the technical point of view, WTI oil continues its attempts to settle above the resistance level at $86.00 – $86.50. If WTI oil stays above the $86.50 level, it will head towards the next resistance, which is located in the $91.50 – $92.00 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

Brent Oil Tests The $94.00 Level

Brent oil tested new highs as traders remained bullish ahead of the weekend. U.S. and Iran are not ready for negotiations, and traders bet that oil prices will continue to move higher.

In case Brent oil settles above the $94.00 level, it will head towards the resistance level at $95.50 – $96.00. A successful test of the resistance at $95.50 – $96.00 will open the way to the test of the next resistance at $101.50 – $102.00.

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