Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Dives 5.5% As Traders Bet On Iran Deal

Natural Gas Pulls Back From Multi-Week Highs

Natural gas retreats as traders rush to take profits off the table after the strong rally. Traders also monitor the situation in the Middle East, which may have an impact on market mood.

From the technical point of view, natural gas failed to settle above the $3.10 level and pulled back towards the $3.00 level. If natural gas declines below $3.00, it will get to the test of the 50 MA at $2.96. A move below the 50 MA will open the way to the test of the support level at $2.75 – $2.80.

On the upside, natural gas needs to settle back above $3.05 to have a chance to gain sustainable upside momentum in the near term. In this case, natural gas will head towards the next resistance, which is located in the $3.20 – $3.25 range.

WTI Oil Retreats As Traders Focus On U.S. – Iran Talks

WTI oil suffered a sell-off amid reports indicating that that U.S. and Iran have a chance to reach a deal. According to recent reports, President Trump said that the U.S. was in the final stages of talks with Iran. These reports have triggered a strong pullback in the oil markets as traders rushed to take profits near multi-year highs.

Iran has recently said that it would strike beyond the Middle East in case the country is attacked again. It is not clear what Iran meant, but it is obvious that the country views strikes at non-military targets as its key weapon.

It should be noted that Trump has recently said that the U.S. may have to give Iran “another big hit” in case the deal is not reached. Meanwhile, the U.S. continues the naval blockade of Iranian ports, which puts significant pressure on the country’s economy.

It is not clear whether Iran and U.S. will be able to reach a deal in the near term as the sides of negotiations remain far apart.

Interestingly, Iran claimed that 26 ships managed to pass through the Strait of Hormuz in the previous day. The country added that it was possible with the coordination from its naval forces.

Currently, WTI oil is trying to settle below the support level at $97.00 – $97.50. In case this attempt is successful, WTI oil will move towards the next support level, which is located in the $91.00 – $91.50 range.

Brent Oil Tests Support At $103.00 – $103.50

Brent oil pulled back as traders focused on geopolitical developments. Traders also kept an eye on the EIA report, which showed that crude inventories decreased by -7.9 million barrels from the previous week.

The report has also indicated that U.S. Strategic Petroleum Reserve declined from 384.1 million barrels to 374.2 million barrels.

Brent oil failed to settle above the resistance level at $111.50 – $112.00 and pulled back towards the support at $103.00 – $103.50. A successful test of the support at $103.00 – $103.50 will open the way to the test of the next support level at $96.00 – $96.50. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

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