Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Pulls Back As Saudi Arabia Offers Discounts To Asian Buyers

Natural Gas Rebounds As Traders Focus On High Demand

Natural gas gains ground but remains stuck near support level at $3.20 – $3.25. Rising natural gas stocks put pressure on every rally, so the market stays range-bound despite high demand.

In case natural gas manages to settle above the $3.25 level, it will head towards the resistance at $3.40 – $3.45. A move above the $3.45 level will provide natural gas with an opportunity to gain additional upside momentum.

On the support side, a move below the $3.20 level will push natural gas towards the nearest support at $3.00 – $3.25. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.

WTI Oil Pulls Back As Saudi Arabia Sells Oil At A Discount

WTI oil is losing ground amid reports indicating that Saudi Arabia cut prices for buyers in Asia. According to the reports, Saudi Arabia is selling its oil at a discount for the first time since 2020.

Saudi Arabia’s decision to offer discounts shows that the flow of oil from the Strait of Hormuz continues to increase. U.S. has provided Iran with a sanctions waiver, and the country rushed to sell its oil to raise cash for its devastated economy. UAE, which has recently left OPEC, has managed to quickly boost its oil exports.

The market is moving from deficit to surplus. In previous months, high oil prices put pressure on global economy and forced central banks to raise rates. Oil prices have pulled back to pre-war levels but demand has not recovered as damage has been already done. Thus, the short-term outlook remains bearish.

Interstingly, the market has completely ignored the funeral of Iran’s Supreme Leader Ali Khamenei, who was killed at the beginning of the military operation against Iran. The mourners called for vengeance and portrayed Iran’s negotiators as weak. At this point, traders do not expect that Iran will change its course in negotiations with the U.S. as the country badly needs cash.

In case WTI oil settles below the $68.00 level, it will head towards the support level, which is located in the $66.50 – $67.00 range. A move below the $66.50 level will push WTI oil towards the $62.00 level.

On the upside, the nearest resistance level for WTI oil is located in the $70.50 – $71.00 range. A move above the $71.00 level will open the way to the test of the resistance at $74.50 – $75.00.

Brent Oil Is Stuck Near The $72.00 Level

Brent oil was swinging between gains and losses as the market continued to stabilize after the strong pullback.

If Brent oil manages to settle above the resistance at $72.00 – $72.50, it will head towards the next resistance level at $77.00 – $77.50. On the support side, a move below the $70.00 level will push Brent oil towards the nearest support at $67.00 – $67.50. It should be noted that RSI remains in the oversold territory, but there is some room to gain additional downside momentum in case the right catalysts emerge.

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