Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Dives As Trump Calls Off Strikes Against Iran

Natural Gas Tests The $2.80 Level

Natural gas continues its attempts to settle above the resistance at $2.75 – $2.80 as traders focus on the bullish changes in weather forecasts.

In case natural gas manages to settle above the $2.80 level, it will head towards the next resistance at $3.00 – $3.05. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.

On the support side, a move below the $2.70 level will push natural gas towards the support at $2.50 – $2.55.

WTI Oil Retreats As Traders Bet That Strait Of Hormuz Would Be Reopened

WTI oil is losing ground as traders focus on negotiations in the Middle East. President Trump called off a major attack on Iran to provide additional time for talks.

Meanwhile, Iran continued negotiations with Oman to allow more ships to go through the Strait of Hormuz. According to Iranian foreign ministry, Iran and Oman discussed a temporary route for vessels that would ensure their safety. Iranian officials noted that they were not negotiating with the United States.

According to President Trump, Iranian officials lied, and Iran was in negotiations with the U.S. He noted that Iran should make the deal fast, starting with the complete opening of the Strait of Hormuz.

Earlier, Iran rejected Oman’s proposals regarding future management of the Strait of Hormuz. However, it looks that Iran, whose economy is under strong pressure, is finally ready for a temporary deal.

Oil traders bet that Iran would announce that ships may go through the Strait of Hormuz soon. Traders should note that oil prices will rally in case the potential deal falls apart and U.S. delivers heavy strikes against Iran.

WTI oil moved below the support at $81.50 – $82.00 and is trying to settle below the psychologically important $80.00 level. In case this attempt is successful, WTI oil will head towards the next support, which is located in the $77.50 – $78.00 range.

On the upside, a move above the $82.00 level will open the way to the test of the resistance level at $85.50 – $86.00.

Brent Oil Attempts To Settle Below $83.00

Brent oil is losing ground as traders bet that the Strait of Hormuz would be reopened. Oil supply will grow quickly in case U.S. and Iran reach a deal that ensures safe passage through the Strait.

Currently, Brent oil is trying to settle below the 50 MA at $85.05. If Brent oil settles below the 50 MA, it will move towards the nearest support level, which is located in the $82.00 – $82.50 range. A successful test of this level will push Brent oil towards the next support at $77.50 – $78.00.

On the upside, a move above the 50 MA will open the way to the test of the resistance level at $86.50 – $87.00. Traders should be prepared for fast moves as Brent oil will remain extremely sensitive to geopolitical news in the upcoming trading sessions.

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