Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Pulls Back From Session Highs Despite Trump’s Threats Against Iran

Natural Gas Is Stuck Near Support At $2.75 – $2.80

Natural gas continues its attempts to settle below the support level at $2.75 – $2.80 as traders ignore rising tensions in the Middle East and focus on domestic demand.

If natural gas settles below the $2.75 level, it will move towards the next support, which is located in the $2.50 – $2.55 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.

On the upside, a move above the $2.90 level will open the way to the test of the resistance level at $3.00 – $3.05.

WTI Oil Tested New Highs

WTI oil is swinging between gains and losses as traders focus on the situation in the Middle East.

Iran has recently rejected the U.S. proposal for a ceasefire. The country wants to establish an official control of the Strait of Hormuz. Iran also wants to get payments for damages suffered during the war. In short, Iran rejects the whole idea of a ceasefire and wants a permanent end of the conflict.

U.S. President Trump has recently commented on Iran. He said that Iran could be decimated by midnight Tuesday if the country did not agree to a deal. Specifically, Trump said that U.S. will destroy power plants and bridges in Iran.

Interestingly, Trump said that Iran was negotiating in good faith. However, Iran’s proposal was not good enough for the U.S. Traders should note that Iran’s public demands may differ from the diplomatic proposal the country presented to the U.S.

Trump noted that any deal with Iran should include the free flow of oil through the Strait of Hormuz. Iran’s current control of the Strait is the country’s key negotiating position. Trump also said that he wanted to take Iran’s oil.

Traders are left guessing whether the conflict could end soon or the fighting would continue. In recent weeks, traders worried about a potential ground operation in Iran. However, Trump was talking about airstrikes, and it remains to be seen whether U.S. is ready to get boots on the ground with unpredictable results.

Currently, WTI oil is trying to stay above the $112.00 level. In case this attempt is successful, WTI oil will move towards recent highs near the $115.00 level. A move above this level will open the way to the test of the resistance at $118.50 – $119.00.

Brent Oil Attempts To Settle Above $110

Brent oil continues its attempts to settle above the resistance level at $108.50 – $109.00 as traders monitor the situation in the Middle East.

According to recent reports, the traffic through the Strait of Hormuz has increased. It looks that more countries have secured safe-passage deals with Iran. It is believed that any vessel that passes through the Strait of Hormuz pays a fee to Iranian forces.

If Brent oil manages to settle above the $110.00 level, it will move towards the resistance, which is located in the $118.50 – $119.00 range. This resistance level has been tested several times and proved its strength. A move above the $119.00 level may trigger a strong rally.

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