Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Markets Attempt To Rebound After Multi-Day Sell-Off

Natural Gas Moves Higher As Storage Build Misses Estimates

Natural gas gains ground as traders react to the EIA Weekly Natural Gas Storage Report. The report indicated that working gas in storage increased by +73 Bcf from the previous week, compared to analyst forecast of +75 Bcf. Lower-than-expected storage build provided material support to natural gas markets.

At current levels, stocks are -29 Bcf less than last year and +151 Bcf above the five-year average for this time of the year.

From the technical point of view, natural gas attempts to settle above the resistance level at $3.20 – $3.25. In case natural gas manages to settle above the $3.25 level, it will head towards the resistance at recent highs at $3.40 – $3.45 range.

On the support side, the nearest support level for natural gas is located in the $3.00 – $3.05 range. A move below the $3.00 level will push natural gas towards the $2.80 level.

WTI Oil Rebounds From Session Lows

WTI oil attempts to rebound as some traders are ready to buy the dip after the strong pullback.

The memorandum of understanding between U.S. and Iran has been signed late Wednesday, and traders focus on the situation in the Strait of Hormuz.

According to recent reports, shipping has already started returning to the Strait of Hormuz. U.S. ended the naval blockade of Iranian ports but warned that its vessels will stand in the nearby to control Iran’s behavior.

U.S. and Iran agreed to discuss the comprehensive peace deal for 60 days. Iran’s nuclear program, as well as the country’s desire to charge tolls for passage through the Strait of Hormuz, would be the key topics of negotiations. The U.S. has already signaled that negotiations could take more than 60 days if necessary.

It should be noted that nuclear program negotiations will demand involvement of technical experts who must find solutions to complex problems. Political will alone would not be sufficient to reach a deal, so it is highly likely that U.S. and Iran will have to work for months to find a solution to the problem of Iran’s highly enriched uranium even if both sides are ready to compromise.

In case WTI oil manages to settle back above the support level at $76.50 – $77.00, it will head towards the resistance level at $81.00 – $81.50.

On the support side, a move below recent lows near the $73.50 level will push WTI oil towards the support level at $70.50 – $71.00.

Brent Oil Tests The $79.00 Level

Brent oil has also moved higher as traders rushed to take profits off the table after the strong pullback.

U.S. and Iran have signed the interim deal, and the market’s focus shifts to the implementation of the deal.

In case Brent oil climbs above the psycholoigcally important $80.00 level, it will get to the test of the resistance level at $81.00 – $81.50. A move above the $81.50 level will provide Brent oil with a chance to gain additional upside momentum.

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