Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Dives 10% As Schumer Says Democrats Would End The War In Iran

Natural Gas Moves Higher On Dip-Buying

Natural gas continues to rebound as traders buy the dip despite warm weather forecasts.

The nearest resistance level for natural gas is located in the $3.00 – $3.05 range. In case natural gas manages to settle above the $3.05 level, it will head towards the next resistance at $3.20 – $3.23. A move above the $3.23 level will push natural gas towards the 50 MA at $2.28. RSI is in the moderate territory, so there is plenty of room to gain additional upside momentum in the near term.

On the support side, a move below the $2.90 level will push natural gas towards the support level at $2.80 – $2.83.

WTI Oil Dives As Traders Focus On Schumer’s Comments

WTI oil suffered a sell-off as traders reacted to results of U.S. midterm elections and focused on comments from U.S. officials. Democrats secured control of both the House and the Senate.

Vice President Vance said that the reason why Republicans lost elections was the war in Iran. Trump insisted that he did the right thing.

Senate Democratic Leader Schumer said that Democrats would end the war in Iran, adding that some Republicans had already joined “in ending the war”.

Today, traders also had a chance to take a look at the EIA Weekly Petroleum Status Report. The report showed that crude inventories decreased by -0.9 million barrels from the previous week, compared to analyst forecast of +0.9 million barrels. Gasoline inventories declined by -0.2 million barrels, while analysts expected that they would increase by +0.2 million barrels.

Strategic Petroleum Reserve decreased from 282.6 million barrels to 282.2 million barrels as U.S. continued to sell oil from strategic reserves. Domestic oil production increased from 13.992 million bpd to 14.003 million bpd, climbing above the psychologically important 14.0 million bpd level.

Currently, WTI oil is trying to settle below the support level at $87.50 – $88.00. In case this attempt is successful, WTI oil will head towards the next support, which is located in the $83.00 – $83.50 range.

Brent Oil Tests New Lows

Brent oil found itself under strong pressure as traders bet that President Trump would be forced to find ways to end the conflict in Iran. It remains to be seen whether Trump is ready to change his strategy on Iran.

However, Iranians have recently signaled that they were ready for serious negotiations, so the oil market has started to price in the rising probability of a deal between U.S. and Iran.

From the technical point of view, Brent oil attempts to settle below the support level at $95.50 – $96.00. If Brent oil stays below the $95.50 level, it will head towards the next support, which is located in the $91.00 – $91.50 range.

On the upside, Brent oil needs to climb back above the $96.00 level to have a chance to gain upside momentum in the near term. In this case, Brent oil will head towards the resistance level, which is located in the $99.50 – $100.00 range.

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