Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Moves Away From Session Lows As Traders Wait For Iran’s Response

Natural Gas Moves Higher As Traders Focus On EIA Data

Natural gas rebounds as traders react to the EIA Weekly Natural Gas Storage Report. The report indicated that working gas in storage increased by +63 Bcf from the previous week, compared to analyst forecast of +74 Bcf. The lower-than-expected build provided support to natural gas markets.

At current levels, stocks are +75 Bcf higher than last year and +139 Bcf above the five-year average for this time of the year. High stocks have served as one of the key negative catalysts for natural gas in recent weeks.

Currently, natural gas is trying to settle above the resistance at $2.75 – $2.80. If natural gas manages to settle back above the $2.80 level, it will move towards the next resistance level, which is located in the $3.00 – $3.05 range.

On the support side, a move below the $2.70 level will push natural gas towards $2.60. In case natural gas declines below the $2.60 level, it will get to the test of the support at $2.50 – $2.55.

WTI Oil Tested Support At $91.00 – $91.50

WTI oil rebounded from session lows as traders waited for Iran’s response to U.S. proposal.

Iranian media reported that the country’s President Masoud Pezeshkian met with Supreme Leader Mojtaba Khamenei and talked for two and a half hours. The media did not provide any details about their meeting, but it looks that they were discussing U.S. proposal to end the war.

Negotiations between U.S. and Iran are expected to continue next week in Pakistan’s capital Islamabad. It should be noted that the market will remain nervous in absence of official confirmation.

Meanwhile, Israel delivered strikes against Lebanon and killed a Hezbollah commander. Israel’s actions provided some support to oil prices. However, the ceasefire in the Middle East remains in place, and various incidents do not lead to a full restart of military action. Earlier,  U.S. ignored Iran’s attack against UAE.

If WTI oil manages to settle back above the resistance at $97.00 – $97.50, it will move towards the next resistance at $102.00 – $102.50. On the support side, a move below the 50 MA at $93.80 will push WTI oil towards the support at $91.00 – $91.50.

Brent Oil Is Losing Ground As Traders Wait For Iran’s Comments On U.S. Proposal

Brent oil has also rebounded from session lows amid geopolitical uncertainty. From the technical point of view, Brent oil tested the support level at $97.00 – $97.50. This support level has already been tested several times and proved its strength.

In case Brent oil manages to settle below the $97.00 level, it will gain additional downside momentum. A  move below $97.00 will push Brent oil towards the $90.00 level. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

On the upside, Brent oil needs to settle above the resistance at $103.00 – $103.50 to have a chance to gain upside momentum in the near term. If Brent oil settles above $103.50, it will move towards the resistance level at $111.50 – $112.00. Most likely, Brent oil will need significant catalysts to get to the test of the $112.00 level.

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