Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Dives As Trump Says Iran Wants A Deal

Natural Gas Is Under Pressure At The Start Of The Week

Natural gas continues to move lower as traders focus on the efforts to solve the crisis in the Middle East. European natural gas have stabilized, which was bearish for U.S. natural gas prices.

In absence of significant geopolitical news, traders focus on the outlook for domestic demand.

Currently, natural gas is trying to settle below the support level at $3.00 – $3.05. In case this attempt is successful, natural gas will head towards the next support, which is located in the $2.75 – $3.00 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.

WTI Oil Pulls Back As Traders Focus On Trump’s Comments

WTI oil is losing ground as traders react to recent developments in the Middle East.

The port of Fujairah in the UAE has recently resumed operations, which was bearish for oil markets. Earlier, the port was attacked by a drone. Dubai, which is one of the world’s key hubs, restarted flights after a temporary drone-related suspension.

President Trump has delivered comments on the situation in the Strait of Hormuz, which remains de-facto shut. He said that ships must be willing to pass through the Strait.

Trump also added that Iran wanted to make a deal and was talking to U.S. officials. He noted that he did not know whether Iran was ready for such a deal, adding that he didn’t know who were Iran’s leaders. According to Trump, all of Iran’s leaders are dead. At this point, the U.S. does not know whether Ayatollah Mojtaba Khamenei is dead or alive.

Meanwhile, Iran continued to attack targets in the Gulf, while the U.S. and Israel delivered strikes against the country. Israel believes that Iran has lost its ability to produce new ballistic missiles, while 70% of its missile launchers were destroyed.

Recent reports indicated that Iran-linked vessels have managed to get through the Strait of Hormuz. A very large crude carrier (VLCC), which was headed for China, was among those vessels. These reports served as an additional bearish catalyst for oil markets.

From the technical point of view, WTI oil made an attempt to settle above the resistance at $97.00 – $97.50 but lost momentum and pulled back towards the $93.00 level. In case WTI oil manages to settle below the $93.00 level, it will head towards the support, which is located in the $90.00 – $90.50 range.

Brent Oil Retreats On Profit-Taking

Brent oil pulled back as traders rushed to take some profits off the table after the strong rally.

Some traders are ready to bet that U.S. and its allies will be able to stabilize the market by releasing oil from strategic reserves.

Brent oil failed to settle above the resistance at $103.00 – $103.50 and pulled back towards the psychologically important $100.00 level. In case Brent oil manages to settle below the $100.00 level, it will move towards the nearest support, which is located in the $97.50 – $98.00 range.

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