Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Gains 4% As Trump Says Ceasefire Is On “Life Support”

Natural Gas Tests The $2.90 Level

Natural gas soars as traders focus on bullish changes in weather forecasts and focus on rising tensions in the Middle East.

From the technical point of view, natural gas climbed above the resistance at $2.75 – $2.80 and is trying to settle above the $2.90 level. In case this attempt is successful, natural gas will move towards the next resistance level, which is located in the $3.00 – $3.05 range.

On the support side, natural gas needs to settle below the $2.70 level to gain downside momentum in the near term. In this case, natural gas will head towards recent lows near the $2.60 level.

WTI Oil Rallies As Geopolitical Risks Rise

WTI oil soars as traders focus on Trump’s comments on Iran. U.S. President rejected Iran’s response to the U.S. proposal to end the war in the Middle East, calling it a “piece of garbage”.

He added that the ceasefire agreement was on “massive life support”. Iran wants the U.S. to lift the naval blockade and provide sanctions relief. The country plans to maintain control of the traffic going through the Strait of Hormuz. Iran also wants to get back its frozen assets.

Reports indicate that Iran does not plan to give up its nuclear program. The country’s nuclear program was the key reason for the U.S. operation against Iran, so it’s hard to expect that Trump would agree to any plan that does not address Iran’s nuclear ambitions.

In addition to Iran’s nuclear program, Israel’s operation against Hezbollah in Lebanon serves as another stumbling block for the potential peace deal. Iran wants Israel to stop fighting against Hezbollah, while Israel plans to improve its safety by defeating the militant group.

Oil traders are worried that U.S. – Iran negotiations have stalled and U.S. could restart its military operation against Iran. Meanwhile, the Strait of Hormuz remains mostly blocked, although some vessels manage to get through. Iran claimed that it deployed mini submarines to control the Strait of Hormuz, but this claim has not been verified yet.

From the technical point of view, WTI oil attempts to settle above the resistance at $97.00 – $97.50. In case WTI oil stays above the $97.50 level, it will get to another test of the psychologically important $100.00 level. A move above the $100.00 level will open the way to the test of the next resistance level at $102.00 – $102.50.

Brent Oil Tests Resistance At $103.00 – $103.50

Brent oil gained strong upside momentum as geopolitical premium increased. The situation in the physical market remains tense, and it may get worse as the driving season starts soon.

Brent oil attempts to settle above the resistance level at $103.00 – 103.50. If Brent oil settles above the $103.50 level, it will move towards the next resistance level, which is located in the $111.50 – $112.00 range.

On the support side, a move below the 50 MA at $101.27 will push Brent oil towards the support level at $97.00 – $97.50. Oil markets will remain extremely sensitive to news from the Middle East, so traders should be prepared for fast moves.

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