Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Dives 11% As Traders Focus On U.S. – Iran Talks

Natural Gas Tests The $2.90 Level

Natural gas pulls back as traders react to the developments in the Middle East. The geopolitical premium declined, which served as a bearish catalyst for natural gas markets.

Current demand for natural gas remains low. Weather forecasts indicate that demand should not grow materially in the upcoming days.

From the technical point of view, natural gas pulled back below the support level at $3.00 – $3.05 and is trying to settle below the $2.90 level. In case this attempt is successful, natural gas will move towards the next support, which is located in the $2.75 – $2.80 range. RSI remains in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

WTI Oil Retreats As Traders React To Trump’s Comments On Iran

WTI oil suffered a strong sell-off as traders focused on Trump’s comments on Iran. President Trump said that Iran has recently negotiated with the U.S. Trump believes that these negotiations could be successful, so he delayed strikes on Iranian energy infrastructure for five days.

Iranian officials denied talks. According to recent reports, Iranian TV said that U.S. tried to negotiate with Iran but the country has not responded to the requests for talks.

UK Prime Minister Starmer noted that he new about U.S. – Iran negotiations before Trump made them public. Oil traders do not believe in the comments of the Iranian side and focus on Trump’s comments on the situation.

It should be noted that global markets were under strong pressure before Trump’s comments. Traders worried that U.S. will strike Iranian energy infrastructure, while Iran would respond by striking energy assets in the region.

In this light, it is not clear whether Trump wants to negotiate or tries to calm financial markets. Anyway, oil traders decided to take some profits off the table after the strong rally.

WTI oil failed to settle above the resistance at $97.00 – $97.50 and moved below the support at $90.00 – $90.50. Currently, WTI oil is trying to settle below the $87.00 level. In case this attempt is successful, WTI oil will head towards the next support, which is located in the $84.50 – $85.00 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.

Brent Oil Dives As Geopolitical Premium Declines

Brent oil is under strong pressure amid broad sell-off in the oil markets, which was triggered by Trump’s comments.

Traders will stay focused on news from U.S. President in the upcoming trading sessions. His posts in social media serve as key catalysts for oil markets nowadays.

From the technical point of view, Brent oil pulled back below the support at $103.00 – $103.50 and declined below the psychologically important $100 level.

In case Brent oil stays below the $100 level, it will get to another test of the next support, which is located in the $96.00 – $96.50 range. A move below the $96.00 level will provide Brent oil with an opportunity to gain additional downside momentum.

On the upside, Brent oil needs to settle back above the $103.50 level to have a chance to gain sustainable upside momentum in the near term.

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