Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Attempts To Rebound As Traders Wait For The New Round Of U.S. – Iran Talks

Natural Gas Retreats At The Start Of The Week

Natural gas is losing ground despite high demand and favorable weather forecasts for the upcoming days. Demand is expected to stay high this week.

Currently, natural gas is trying to settle below the support at $3.20 – $3.25. In case this attempt is successful, natural gas will head towards the next support level, which is located in the $3.00 – $3.05 range.

On the upside, a move above the $3.25 level will open the way to the test of the resistance level at $3.40 – $3.45.

WTI Oil Moves Higher As Traders Prepare For U.S. – Iran Talks

WTI oil gains ground as traders react to recent developments in the Middle East. U.S. and Iran exchanged attacks over the weekend. However, they agreed to halt attacks to provide time for negotiations.

According to President Trump, Iran had requested a meeting. The meeting is expected to take place in Doha, Qatar. As usual, Iran has not confirmed the details of the new meeting.

Recent reports suggest that vessles continued to move through the Strait of Hormuz on Monday. It remains to be seen whether attacks over the weekend had a material impact on shipowners’ plans.

At this point, the market is not ready to react to such attacks. Traders bet that U.S. and Iran attempt to improve their negotiating positions but are not ready to close the Strait of Hormuz. Iran needs money for its devastated economy, while the U.S. is worried about the inflationary impact of high energy prices.

Meanwhile, Iran said that it held the first meeting with Oman. The countries discussed the future management of the Strait of Hormuz. U.S. and allies oppose any fees in the Strait of Hormuz, but it looks that Iran wants to test the idea. Previously, Oman told the EU that there was no way to get back to pre-war status of the Strait of Hormuz.

Interestingly, Iran resumed scheduled flights to Dubai. It should be noted that UAE has been heavily attacked by Iran during the war against U.S. and Israel, so the resumption of flights is a major development for the peace process in the Middle East.

In case WTI oil settles above the $71.00 level, it will head towards the $73.50 level. A move above $73.50 will open the way to the test of the resistance at $76.50 – $77.00.

On the support side, WTI oil needs to settle below the $69.00 level to gain downside momentum in the near term. In this case, WTI oil will head towards the next support at $66.50 – $67.00.

Brent Oil Remains Stuck Near The $72.50 Level

Brent oil attempts to rebound as traders wait for the next round of U.S. – Iran negotiations.

A successful test of the support at $72.00 – $72.50 will push Brent oil towards the next support level, which is located in the $67.00 – $67.50 range.

On the upside, a move above the $75.00 level will push Brent oil towards the resistance at $77.00 – $77.50.

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