Natural Gas Attempts To Settle Above $2.95
Natural gas rallied above the $2.90 level and is trying to settle above $2.95. Traders bet that demand will provide sufficient support to prices despite seasonality.
In case natural gas settles above the $2.95 level, it will head towards the nearest resistance, which is located in the $3.00 – $3.05 range. A move above the $3.05 level will open the way to the test of the resistance at $3.20 – $3.25.
On the support side, a move below $2.90 will push natural gas towards the 50 MA at $2.86. If natural gas declines below the 50 MA, it will head towards the support level at $2.75 – $2.80.
WTI Oil Is Losing Ground As U.S. Talks To Iranians In New York
WTI oil settled near the $90.00 level as traders switched to November contract. Donald Trump’s comments on Iran were the key driver for oil markets today.
Trump said that U.S. delegation talked with Iranian officials for three hours. He said that the meeting was “very good”. He did not provide details on the meeting and noted that there would be another one in the near future.
Earlier, Trump threatened Iran annihilation in case the country did not accept a deal. According to recent reports, Gulf states urged Trump to avoid escalation in the Middle East. Gulf countries worry that Iran could destroy their oil facilities in retaliation for a potential U.S. attack.
Saudi Arabia has began to restart the key East-West pipeline which was damaged by an attack. Reports suggest that Saudi Arabia aims to restart the pipeline by Saturday. Saudi Aramco did not comment on this issue, but the market believes that oil will soon start flowing through the pipeline.
The nearest support level for WTI oil is located in the $88.50 – $89.00 range. In case WTI oil declines below the $88.50 level, it will head towards the 50 MA at $87.37. A move below the 50 MA will push WTI oil towards the support at $84.50 – $85.00.
On the upside, WTI oil needs to settle back above the resistance at $92.50 – $93.00 to have a chance to gain upside momentum in the near term. In this case, WTI oil will head towards the $95.00 level.
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See all Natural Gas forecastsBrent Oil Pulled Back Below The $100.00 Level
Brent oil tested new lows as traders reacted to Trump’s comments on Iran and bet that U.S. and Iran would continue negotiations. Saudi Arabia’s plans to restart the key pipeline put additional pressure on Brent oil.
Brent oil moved below the psychologically important $100.00 level and made an attempt to settle below the support at $97.00 – $97.50. In case Brent oil manages to settle below the $97.00 level, it will head towards the support level, which is located in the $93.00 – $93.50 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.
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