Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Gains Ground As U.S. – Iran Talks Stall

Natural Gas Tests New Highs

Natural gas tests new highs as traders focus on bullish weather forecasts. Traders bet that hotter weather will boost cooling demand and push natural gas prices towards new highs.

Currently, natural gas is trying to settle above the resistance at $3.00 – $3.05. In case this attempt is successful, natural gas will head towards the next resistance level, which is located in the $3.20 – $3.25 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 50 MA at $2.96 will open the way to the test of the support level at $2.75 – $2.80.

WTI Oil Moves Higher Amid Rising Geopolitical Risks

WTI oil gains ground as U.S. and Iran did not get closer to a deal over the weekend.

On Sunday, Pakistani mediators delivered Iranian proposal to the U.S. The U.S. said that the proposal lacked meaningful improvement compared to previous versions.

According to recent reports, Iran’s proposal did not include the transfer of the country’s stockpile of highly enriched uranium. Iran’s nuclear program was the key reason for the U.S. military operation against the country, so the deal would not be possible if Iran does not make concessions on this front.

In turn, Iran noted that U.S. demands were not realistic. Iran insists that it must get back its frozen assets. The country also wants to get compensated for damages sustained during the war.

It should be noted that the United Arab Emirates reported a drone attack today. The drone struck near a nuclear power plant.

Meanwhile, the U.S. extended the sanctions waiver on the sales fo Russian oil for 30 days. This decision did not put pressure on oil markets as traders remained focused on the physical deficit of oil and the lack of progress in U.S. – Iran negotiations.

WTI oil attempts to settle above the resistance level at $107.50 – $108.00. In case WTI oil manages to settle above the $108.00 level, it will head towards the next resistance, which is located in the $117.00 – $117.50 range.

On the support side, WTI oil needs to settle back below the support level at $102.00 – $102.50 to gain downside momentum in the near term. In this case, WTI oil will head towards the 50 MA at $97.57.

Brent Oil Tests The $112.00 Level

Brent oil moved higher amid rising geopolitical risks. Traders are worried that U.S. will restart the military operation against Iran as the talks have stalled and Iran is not ready for concessions regarding its nuclear program.

From the technical point of view, Brent oil attempts to settle above the resistance level at $111.50 – $112.00. In case Brent oil manages to settle above the $112.00 level, it will head towards the next resistance level, which is located in the $119.50 – $120.00 range.

On the support side, a move below the $107.00 level will open the way to the test of the nearest support at $103.00 – $103.50. If Brent oil declines below the $103.00 level, it will head towards the psychologically important $100.00 level.

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