Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Pulls Back As U.S. Negotiators Arrive In Doha

Natural Gas Rebounds As Traders Focus On High Demand

Natural gas rebounds after yesterday’s pullback as traders focus on strong demand, which is expected to remain high until the end of the week.

From the technical point of view, natural gas is swinging back and forth near the support level at $3.20 – $3.25. In case natural gas manages to settle above the $3.25 level, it will head towards the resistance level at $3.40 – $3.45.

On the support side, a move below the support at $3.20 – $3.25 will push natural gas towards the next support level at $3.00 – $3.25.

WTI Oil Moves Lower Amid Rising Traffic In The Strait of Hormuz

WTI oil is losing ground as traders focus on U.S. – Iran negotiations. According to recent reports, Jared Kushner and Steve Witkoff have already arrived in Doha to take part in talks between U.S. and Iran.

Qatar said that U.S. officials would not meet Iranian officials directly. The country, which serves as a mediator, has also noted that it was too early to expect a breakthrough in negotiations.

The arrival of Kushner and Witkoff shows that the situation has calmed down after recent escalation. Reports indicate that traffic through the Strait of Hormuz has increased after Iran’s attack on ships.

It should be noted that key issues are yet to be resolved. Iran and Oman want to charge fees for passage through the Strait of Hormuz. U.S., EU, and Gulf countries oppose the idea.

Iran also wants to get back its frozen assets. Qatar has recently said that no funds had been transferred to Iran. Israel’s operation against Hezbollah in Lebanon is one of the key threats for the potential deal. It remains to be seen whether both Israel and Hezbollah are ready for a long-term deal.

U.S. and Iran will also have to discuss Iran’s nuclear program, which was the key reason for the start of the operation against Iran. Put simply, there’s little chance that U.S. and Iran will reach a deal in the near term, but traders bet that oil will continue to flow through the Strait of Hormuz.

WTI oil continues its attempts to settle below the support at $70.50 – $71.00. In case WTI oil manages to settle below the $70.50 level, it will head towards the next support level, which is located in the $66.50 – $67.00 range. RSI is close to the oversold territory, but there is enough room to gain additional downside momentum in the near term.

Brent Oil Settled Above The Support At $72.00 – $72.50

Brent oil remains stuck above the support at $72.00 – $72.50 as traders focus on geopolitical developments and wait for additional catalysts.

A successful test of the support at $72.00 – $72.50 will open the way to the test of the next support level, which is located in the $67.00 – $67.50 range.

On the upside, Brent oil needs to climb above the $75.00 level to have a chance to gain upside momentum in the near term. In this case, Brent oil will head towards the nearest resistance at $77.00 – $77.50.

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