Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Moves Higher As Iran Delays Nuclear Talks With U.S.

Natural Gas Traders Stay Cautious Ahead Of The Weekend

Natural gas remains stuck near the resistance at $3.20 – $3.25 as traders focus on yesterday’s EIA report, which showed that working gas in storage increased by +73 Bcf from the previous week.

A successful test of the resistance at $3.20 – $3.25 will open the way to the test of the next resistance level at $3.40 – $3.45. 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 $3.15 level will push natural gas towards the nearest support at $3.00 – $3.05. In case natural gas manages to settle below the $3.00 level, it will head towards the $2.80 level.

WTI Oil Gains Ground As Traders Focus On Israel – Hezbollah Conflict

WTI oil is moving higher as traders focus on escalation in Lebanon. Israel and Hezbollah attacked each other, testing the fragile deal between Iran and U.S.

Iran wants Israel to stop its operation against Hezbollah in Lebanon. Israel insists that the country has the right to defend itself. The U.S. designated Hezbollah as a Foreign Terrorist Organization, but tries to put some pressure on Israel to maintain the ceasefire deal with Iran. According to recent reports, Israel and Hezbollah agreed to a ceasefire.

Iran has already delayed nuclear talks with the U.S. due to escalation in Lebanon. It remains to be seen whether Iran is ready to get back to the negotiation table over the weekend as the country may decide to monitor the situation in Lebanon.

As it often happens in such conflicts, it is difficult to say who made the first attack, and both sides blame each other. Thus, only time will tell whether ceasefire between Israel and Hezbollah is a real deal.

That said, the Strait of Hormuz has been reopened, and problems in Lebanon had no impact on shipping in the world’s key oil route. Recent data suggests that oil producers in the region rush to restart their facilities and look ready to boost production.

In case WTI oil stays above the $77.00 level, it will head towards the psychologically important $80.00 level. A move above the $80.00 level will open the way to the test of the resistance at $81.00 – $81.50.

On the support side, a successful test of the support level at $76.50 – $77.00 will open the way to the test of the next support at $70.50 – $71.00.

Brent Oil Tests The $80.00 Level

Brent oil  continues to rebound after the strong pullback as some traders are ready to buy the dip.

Currently, Brent oil attempts to settle above the resistance level at $81.00 – $81.50. In case this attempt is successful, Brent oil will move towards the next resistance level at $86.00 – $86.50. RSI has recently moved out of the oversold territory, so there is plenty of room to gain upside momentum in the near term.

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