Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Gains 4% As Traders See No Progress In U.S. – Iran Talks

Natural Gas Pulls Back As Traders Focus On Weather Forecasts

Natural gas is losing ground as traders take profits after yesterday’s rally and react to changes in weather forecasts. Current demand for natural gas is moderate, but it may decline at the end of the week.

The nearest support level for natural gas is located in the $2.75 – $2.80 range. If natural gas pulls back below the $2.75 level, it will head towards the next support level at $2.50 – $2.55.

On the upside, natural gas needs to settle back above $2.90 to gain sustainable upside momentum in the near term. In this case, natural gas will head towards the nearest resistance level at $3.00 – $3.05.

WTI Oil Tests New Highs

WTI oil rallied as traders focused on geopolitical developments. Iran said that it could raise uranium enrichment to 90% if the country is attacked again. The 90% enrichment level is sufficient to create a nuclear weapon, which is a scenario U.S. and Israel are trying to prevent.

Iran wants the U.S. to lift the naval blockade of its ports. The country plans to control the traffic in the Strait of Hormuz and also demands sanctions relief to boost its oil trade. At the same time, Iran is not ready to give up its nuclear ambitions or cut its ballistic missile program. Put simply, Iran is not ready to negotiate the points that were the key reason for the war in the Middle East.

It looks that negotiating positions of U.S. and Iran are far apart, so the Strait of Hormuz will stay de-facto closed in the near term.

Today, U.S. CPI report showed that Inflation Rate increased from 3.3% in March to 3.8% in April due to rising gasoline and grocery prices. High gasoline prices have become a political issue, and President Trump wants to provide a gasoline tax holiday.

Iran believes that it has the upper hand in negotiations as high oil prices hurt Trump politically, so it remains to be seen whether the country is ready for any concessions. The stalemate in the Strait of Hormuz may last for months, which would hurt the global economy.

Currently, WTI oil is trying to settle above the resistance level at $102.00 – $102.50. In case this attempt is successful, WTI oil will head towards the next resistance level, which is located in the $107.50 – $108.00 range. RSI remains in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

Brent Oil Attempts To Settle Above $108.00

Brent oil tests new highs as traders bet that U.S. and Iran will not reach a deal anytime soon. The situation in the physical oil market gets worse day by day, supporting the futures market.

Brent oil December 2026 futures are trading above the $90.00 level as traders prepare for long-lasting damage from the closure of the Strait of Hormuz.

From the technical point of view, Brent oil settled above the previous resistance at $103.00 – $103.50 and is trying to settle above the $108.00 level. In case this attempt is successful, Brent oil will move towards the next resistance, which is located in the $111.50 – $112.00 range.

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