Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Pulls Back As Trump Says Negotiations Will Continue

Natural Gas Tests New Lows

Natural gas remains under strong pressure as traders stay focused on yesterday’s EIA Weekly Natural Gas Storage Report, which indicated that working gas in storage increased by +61 Bcf from the previous week. The storage build exceeded analyst estimates and served as a major bearish catalyst for natural gas markets.

From the technical point of view, natural gas settled below the support level at $3.00 – $3.05 and is trying to settle below the $2.90 level. In case this attempt is successful, natural gas will head towards the next support, which is located in the $2.75 – $2.80 range. RSI is in the moderate territory, so there is plenty of room to gain additional downside momentum in the near term.

WTI Oil Retreats As Trump Indicates U.S. And Iran Will Get Back To Negotiations

WTI oil pulls back as traders react to Trump’s comments on Iran. President Trump said that Iran asked U.S. to continue negotiations. He added that U.S. considered that the ceasefire was over.

Earlier, U.S. revoked a sanctions waiver which allowed Iran to sell its oil in the global markets. Trump has also threatened to impose a naval blockade on Iranian ports.

Traders viewed Trump’s remarks as bearish for oil as negotiations reduced chances for an all-out war between U.S. and Iran. That said, both sides may continue to strike each other as the ceasefire has come to an end.

It remains to be seen whether traffic in the Strait of Hormuz will get back to recent levels. Iran attacked several vessels which followed an alternative route in the Strait of Hormuz, and most shipowners will likely be cautious after this incident.

Meanwhile, UAE boosted its oil production to all-time highs. The country has recently left OPEC and OPEC+ and is focused on gaining market share.

Currently, WTI oil is trying to settle below the support level at $70.50 – $71.00. In case this attempt is successful, WTI oil will head towards the next support, which is located in the $67.00 – $67.50 range. A move below the $67.00 level will indicate that WTI oil is ready to gain additional downside momentum.

On the upside, WTI oil needs to stay above the support at $70.50 – $71.00 to have a chance to gain upside momentum in the near term. If WTI oil climbs back above the $73.00 level, it will head towards the resistance at $74.50 – $75.00.

Brent Oil Tests The $76.00 Level

Brent oil moved lower as traders bet on de-escalation in the Middle East. However, traders were not ready for big moves ahead of the weekend.

In case Brent oil declines below the $75.00 level, it will head towards the support, which is located in the $72.00 – $72.50 range. A move below the $72.00 level will push Brent oil towards the psychologically important $72.00 level.

On the upside, a successful test of the resistance at $77.00 – $77.50 will push Brent oil towards the next resistance at $81.00 – $81.50.

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