Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Prices Move Away From Multi-Month Lows

Natural Gas Markets Are Range-Bound Despite High Demand

Natural gas remained stuck near the suppport level at $3.20 – $3.25 for the whole week. The market was not ready for big moves despite high demand, which was triggered by hot weather.

In case natural gas settles above the $3.25 level, it will move towards the nearest resistance, which is located in the $3.40 – $3.45 range.

WTI Oil Moves Higher As Traders Wait For Additional Catalysts

WTI oil gained some ground as short-sellers continued to take profits after the strong pullback.

There were no geopolitical news that could have impacted the market as U.S. prepared for Independence Day celebrations.

Recent reports suggest that Saudi Arabia and UAE have mostly reached pre-war export levels, which means that flows of oil through the Strait of Hormuz have increased significantly.

It remains to be seen whether U.S. and Iran will be able to reach a comprehensive deal in the near term. There are too many difficult points in negotiations. Any solution to the key problem of Iran’s nuclear program would demand lengthy technical discussions between specialists. The results of such negotiations would have to be approved by negotiators from both sides. Put simply, such discussions could take weeks or even months.

However, the market bets that oil will continue to flow while U.S. and Iran negotiate. Both countries are interested in keeping the Strait of Hormuz open, despite recent escalation. In the short term, the oil market may quickly switch from the previous deficit to surplus, which is bearish for oil prices.

Currently, WTI oil is trying to settle above the $69.00 level. In case this attempt is successful, WTI oil will head towards the nearest resistance level, which is located in the $70.50 – $71.00 range. A successful test of the resistance at $70.50 – $71.00 will open the way to the test of the next resistance at $74.50 – $75.00.

On the support side, WTI oil needs to settle below the support level at $66.50 – $67.00. RSI has just moved out of the oversold territory, so there is enough room to gain downside momentum in case the right catalysts.

Brent Oil Tests The $72.00 Level

Brent oil continues its attempts to settle back above the resistance at $72.00 – $72.50 amid lack of strong catalysts. It looks that traders are not ready for big moves ahead of the weekend.

In case Brent oil manages to settle above the $72.50 level, it will move towards the next resistance at $77.00 – $77.50. A move above the $77.50 level will push Brent oil towards the psychologically important $80.00 level. Most likely, Brent oil will need strong positive catalysts for such a move.

On the support side, a move below the $70.00 level will open the way to the test of the support at $67.00 – $67.50.

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