Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Moves Lower As Trump Says He Is Thinking About A Limited Strike Against Iran

Natural Gas Rebounds Ahead Of The Weekend

Natural gas gained ground as traders focused on near-term weather forecasts, which indicate that demand will increase.

Forecasts remain rather bearish for late February, but traders focus on the near-term demand outlook.

From the technical point of view, natural gas received strong support in the $3.00 – $3.05 level. This support level has been tested many times and proved its strength.

In case natural gas settles above the $3.15 level, it will head towards the $3.30 level. A move $3.30 will push natural gas towards the resistance level at $3.50 – $3.55.

WTI Oil Moves Lower Despite Trump’s Comments On Iran

WTI oil pulled back as traders reacted to Donald Trump’s comments on Iran. U.S. President said that he was considering limited military strikes against Iran.

Earlier, Trump noted that he would make a decision on Iran in 10- 15 days and argued that the potential attack on Iran would be much stronger than last summer.

Interestingly, Trump’s comments provided limited support to oil prices in today’s trading session. It looks that some traders decided to take profits off the table after the strong rally.

Today, traders also reacted to U.S. Supreme Court decision on Trump’s tariffs. Supreme Court ruled that tariffs were illegal. Trump has previously said that he was prepared for any potential scenario and that he would find a way to pursue his tariff policy.

According to recent reports, Trump is ready to invoke new measures to maintain tariffs. Trade barriers hurt global economic growth, so the Court’s decision was bullish for oil and other commodities.

However, traders do not believe that Court’s decision would stop Trump’s tariff policy, so they stay cautious.

From the technical point of view, WTI oil is trying to settle above the resistance at $65.50 – $66.00. In case this attempt is successful, WTI oil will gain additional upside momentum and move towards the next resistance level, which is located in the $70.00 – $70.50 range.

RSI remains in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge. Traders should note that WTI oil may open with a gap after the weekend in case U.S. delivers strikes against Iran.

Brent Oil Retreats Amid Profit-Taking

Brent oil has also lost some ground amid profit-taking. It remains to be seen whether traders are ready to continue reducing their long positions ahead of the weekend after Trump’s comments about limited military strikes against Iran.

The only real card in Iran’s pocket is the potential closure of the Strait of Hormuz, which is the key route for global oil trade. In this scenario, oil prices could skyrocket.

However, Iran did not use this option last summer and it is not clear whether the country is ready for this radical move. While the closure of the Strait of Hormuz may provide temporary benefits to Iran, the long-term consequences would be significant as it will alienate Iran’s neighbours.

Brent oil continues its attempts to settle above the $72.00 level. In case Brent oil climbs above $72.00, it will move towards the resistance level at $73.50 – $74.00.

On the support side, a move below $71.00 will push Brent oil towards the nearest support at $69.50 – $70.00.

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