Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Gains Ground As Trump Says U.S. Will Hit Iran Hard

Natural Gas Tests Resistance At $3.20 – $3.25

Natural gas gains ground as traders focus on bullish changes in weather forecasts and prepare for the EIA report, which will be released tomorrow. Analysts expect that working gas in storage increased by +101 Bcf from the previous week.

Currently, natural gas is trying to settle above the resistance level at $3.20 – $3.25. In case this attempt is successful, natural gas will head towards the next resistance, which is located in the $3.40 – $3.45 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

On the support side, a move below the $3.10 level will push natural gas towards the support at $3.00 – $3.05.

WTI Oil Moves Higher Amid Rising Geopolitical Tensions

WTI oil rebounds as traders focus on Trump’s comments on Iran and react to the EIA Weekly Petroleum Status Report.

President Trump said that the U.S. would hit Iran hard as Iran did not agree to a deal. He added that “they should sign their deal”.

According to a recent report, Trump waited for almost two weeks for an answer to his latest proposal from Iran, but Iranians did no reply. In this situation, he decided to increase his leverage and put more pressure on Iran.

It looks that traders do not believe that the U.S. will restart the operation against Iran. At this point, the market bets that U.S. will strike some targets in Iran and call for negotiations. In case the U.S. actions exceed market expectations, oil prices may gain strong upside momentum.

Today, traders also focused on the EIA report. The report indicated that crude inventories declined by -7.2 million barrels from the previous week, compared to analyst forecast of -4 million barrels.

Total motor gasoline inventories increased by +0.2 million barrels, while analysts expected that they would fall by -0.5 million barrels. Distillate fuel inventories declined by -0.2 million barrels from the previous week.

Crude oil imports declined by -0.5 million barrels, averaging 5.9 million bpd. Over the past four weeks, crude oil imports averaged about 5.9 million bpd.

Strategic Petroleum Reserve decreased from 357.1 million barrels to 349.2 million barrels as U.S. continued to sell oil from strategic reserves.

Domestic oil production increased from 13.707 million bpd to 13.799 million bpd as oil producers reacted to high oil prices.

From the technical point of view, WTI oil made an attempt to settle above the resistance at $91.00 – $91.50 but lost momentum and pulled back. If WTI oil declines below the $89.00 level, it wil head towards the nearest support, which is located in the $85.00 – $86.00 range.

Brent Oil Tests The $94.00 Level

Brent oil moved higher as traders focused on rising geopolitical risks. However, Brent oil did not get to the test of the nearest resistance level at $96.00 – $96.50 as traders remained sceptical about the potential restart of the military operation against Iran.

The nearest support level for Brent oil is located in the $91.00 – $91.50 range. In case Brent oil declines below the $91.00 level, it will head towards the next support at $86.00 – $86.50.

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