Natural Gas Tests New Lows As Pullback Continues
Natural gas remained under pressure as traders bet that mild weather would reduce demand for natural gas.
From the technical point of view, natural gas pulled back below the support at $3.20 – $3.25 and made an attempt to settle below the $3.10 level. A move below $3.10 will push natural gas towards the next support, which is located in the $3.00 – $3.05 range.
On the upside, natural gas needs to settle back above the $3.25 level to have a chance to gain upside momentum in the near term. If natural gas settles above $3.25, it will head towards recent highs near the $3.40 level.
WTI Oil Moves Higher As Traders Reduce Bets On Iran Deal
WTI oil gains ground as traders doubt that U.S. and Iran will reach a deal in the near term.
Iranian media reported that negotiations were suspended due to Israel’s operation against Hezbollah in Lebanon. President Trump said that those reports were misleading and added that U.S. and Iran continued negotiations.
According to Trump, the memorandum of understanding between U.S. and Iran, which is needed to reopen the Strait of Hormuz, could be ready over the next week.
Iran’s Merh news agency reported that Iranian officials discussed the final text of the proposal that would be sent to the U.S. Previous reports from Western media suggested that negotiations were moving slowly as Iran’s leader Khamenei did not get messages instantly due to safety concerns.
Traders are worried that negotiations could drag on for months, while traffic through the Strait of Hormuz would not be restored to pre-war levels. Traders also note that President Trump has become less optimistic about the ability to reach a deal in the near term and is talking about the next week.
If WTI oil stays above the resistance at $91.00 – $91.50, it will head towards the next resistance level, which is located in the $97.00 – $97.50 range. A move above $97.50 will open the way to the test of the psychologically important $100.00 level.
On the support side, a move below $90.00 will push WTI oil towards the support level at $84.00 – $84.50.
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See all Natural Gas forecastsBrent Oil Attempts To Settle Above $96.50
Brent oil continues its attempts to settle above the resistance at $96.00 – $96.50 as traders focus on geopolitical developments.
Israel’s operation against Hezbollah is one of the key obstacles, but it is not the only problem for the potential deal. Iran’s desire to charge fees in the Strait of Hormuz, as well as the country’s nuclear program, are among the key issues that would need to be addressed for the deal to be sustainable.
A successful test of the resistance at $96.00 – $96.50 will push Brent oil towards the resistance at $101.00 – $101.50. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.
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