Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Dives 5% As Bessent Signals Progress On U.S. – Iran Deal

Natural Gas Attempts To Settle Below $2.70

Natural gas is losing ground as traders focus on strong production. High storage levels serve as an additional bearish catalyst for natural gas markets.

From the technical point of view, natural gas failed to settle above the resistance at $2.75 – $2.80 and is trying to settle below the $2.70 level. In case this attempt is successful, natural gas will move towards the next support level, which is located in the $2.50 – $2.55 range. RSI is in the moderate territory, so there is enough room to gain downside momentum in case the right catalysts emerge.

On the upside, a successful test of the resistance level at $2.75 – $2.80 will push natural gas towards the next resistance level at $3.00 – $3.05.

WTI Oil Retreats As Traders Bet On U.S. – Iran Deal

WTI oil is under pressure as traders focus on geopolitical news. Qatar said that a proposal to reopen the Strait of Hormuz was drafted and waited for confirmation from U.S. and Iran.

Treasury Secretary Scott Bessent said that that there was a chance that the deal would be ready today or tomorrow. He also signaled that there would be no toll for passage through the Strait of Hormuz. As usual, Iran has not confirmed Bessent’s words.

Recent reports indicated that Iran could allow EU nations to remove mines from the Strait of Hormuz. Previously, Iran said that it would not allow such help.

Oil traders bet that U.S. and Iran will reach a temporary deal that would reopen the Strait of Hormuz and provide time for comprehensive negotiations. The stability of any ceasefire would the key issue to be addressed in any deal. In this light, the potential involvement of European nations could serve as a guarantee for both sides that the ceasefire would not be broken.

WTI oil pulled back below the support level at $77.50 – $78.00 and is trying to settle below the $76.00 level. In case this attempt is successful, WTI oil will move towards the next support, which is located in the $73.00 – $73.50 range.

On the upside, a move above the $80.00 level will push WTI oil towards the resistance level at $81.50 – $82.00.

Brent Oil Tests New Lows

Brent oil tests new lows amid signs indicating that U.S. and Iran are ready for a temporary deal that would reopen the Strait of Hormuz. Traffic will rise quickly in case the deal is reached, which will be bearish for oil markets.

Brent oil declined below the psychologically important $80.00 level and is trying to settle below $79.00. If Brent oil manages to settle below this level, it will move towards the next support at $77.50 – $78.00. A move below the $77.50 level will push Brent oil towards the $75.50 level.

On the upside, Brent oil needs to settle back above the $82.50 level to have a chance to gain upside momentum in the near term. A move above $82.50 will push Brent oil towards the 50 MA at $84.64.

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