Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Dives 10% As Trump Says There’s A Good Chance For Iran Deal

Natural Gas Tests Support At $2.75 – $2.80

Natural gas  pulls back as traders react to weather forecast updates and bet that demand would not be strong enough to boost prices.

Currently, natural gas is trying to settle below the support at $2.75 – $2.80. In case this attempt is successful, natural gas will head towards the next support level, which is located in the $2.50 – $2.55 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.

WTI Oil Retreats Amid De-Escalation In The Middle East

WTI oil suffered a strong sell-off as U.S. and Iran paused strikes . The sides have not attacked each other for three days.

President Trump said that U.S. and Iran held negotiations to end the conflict. He added that there was a good chance for a deal. However, Trump noted that U.S. was prepared to fight in case negotiations did not yield results.

According to recent reports, Iran and Oman discussed the reopening of the Strait of Hormuz. The reports noted that an announcement about progress in these negotiations could be made in the upcoming days.

At this point, the Strait of Hormuz is de-facto closed. Traffic in the Bab al-Mandab Strait is threatened by the Houthis, who have imposed a maritime blockade on Saudi Arabia. In case U.S. and Iran reach a deal to reopen the Strait of Hormuz, Houthis will back off as they are controlled by Iran.

Not surprisingly, traders rush to sell oil amid signs of de-escalation in the Middle East. The U.S. put material pressure on Iran in recent days, but the latter showed resilience. In these circumstances, both sides are once again interested in a temporary deal. In case the deal is reached, oil prices will move lower.

The nearest support level for WTI oil is located in the $81.50 – $82.00 range. A successful test of this level will push WTI oil towards the next support at $78.00 – $78.50.

On the upside, WTI oil needs to climb back above the $84.00 level to have a chance to gain upside momentum in the near term. In this case, WTI oil will head towards the resistance level at $86.00 – $86.50.

Brent Oil Tests The $88.00 Level As Traders Prepare For Iran Deal

Brent oil is under strong pressure as traders focus on Trump’s comments and wait for the announcement of a new temporary deal between U.S. and Iran. The traffic in the Strait of Hormuz would be restored fast in case the deal is reached, so traders rush to sell Brent oil contracts.

Brent oil settled below the $90.00 level and pulled back towards $88.00. In case Brent oil settles below the $88.00 level, it will head towards the nearest support at $86.50 – $87.00. A move below the $86.50 level will push Brent oil towards the next support at $82.50 – $83.00.

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