Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Prices Fall 7% On Possible Iran Deal

Natural Gas Attempts To Rebound

Natural gas  gained ground as traders took some profits off the table after the strong pullback.

From the technical point of view, natural gas settled near the support level at $3.00 – $3.05. In case natural gas manages to settle below the $3.00 level, it will head towards the next support, which is located in the $2.80 – $2.85 range.

On the upside, a move above the $3.10 level will push natural gas towards the 50 MA at $3.17. If natural gas climbs above the 50 MA, it will move towards the resistance level at $3.25 – $3.30.

WTI Oil Dives Amid Progress In U.S. – Iran Talks

WTI oil is under strong pressure as traders react to Trump’s comments on Iran. President Trump said that negotiations with Iran were “proceeding nicely”.  Recent reports suggest that U.S. and Iran plan to extend the ceasefire by 60 days and reopen the Strait of Hormuz.

Interestingly, Trump also urged Qatar and Saudi Arabia to join the Abraham Accords, a deal which has initiated diplomatic normalization between Israel and several Arab countries. Markets view this move as a sign that Trump wants to craft a comprehensive peace deal which would structure the situation in the Middle East for years to come. It remains to be seen whether Qatar and Saudi Arabia are ready to join the Abraham Accords.

Reports indicate that an Iranian delegation went to Qatar to discuss the current state of negotiations. The governor of Iranian central bank was among those who traveled to Qatar, which means that the potential release of frozen Iranian assets is discussed.

It should be noted that Iran has stopped talking about a toll system for the Strait of Hormuz. However, the country plans to take fees for “navigation services”. Iran also believes that the deal should cover everything, including Israel’s operation against Hezbollah in Lebanon. Israel noted that the country maintained freedom of action to ensure its security.

The market volume is thin due to Memorial Day holiday in the U.S. From the technical point of view, WTI oil is trying to settle below the support at $91.00 – $91.50. In case this attempt is successful, WTI oil will head towards the next support level, which is located in the $84.00 – $85.00 range. RSI is in the moderate territory, so there is plenty of room to gain additional downside momentum in the near term.

Brent Oil Tests Support At $96.00 – $96.50

Brent oil suffered a strong sell-off as traders reacted to geopolitical news. The potential deal between U.S. and Iran may serve as a significant bearish catalyst for oil markets. However, negotiations are challenging, so traders should be prepared for surprises.

A successful test of the support at $96.00 – $96.50 will open the way to the test of the next support at $91.00 – $91.50. On the upside, Brent oil must settle back above the resistance at $103.00 – $103.50 to have a chance to gain upside momentum in the near term. Such a move would demand strong catalysts.

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