Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Rallies Amid Middle East Tensions

Natural Gas Rebounds Ahead Of The Weekend

Natural gas gains some ground ahead of the weekend. Prices stabilize as traders remain focused on yesterday’s EIA report, which indicated that working gas in storage decreased by -52 Bcf from the previous week.

Weather forecasts indicate that demand for natural gas should increase from Sunday, providing some support to natural gas prices.

In case natural gas settles back above the $2.90 level, it will move towards the nearest resistance at $3.00 – $3.05. RSI is in the moderate territory, and there is plenty of room to gain momentum in the near term.

On the support side, the nearest support level for natural gas is located in the $2.70 – $2.75 range. A successful test of the support at $2.70 – $2.75 will push natural gas towards the next support level at $2.30 – $2.35.

WTI Oil Gains Ground As Traders Focus On U.S. – Iran Tensions

WTI oil rallies as traders focus on geopolitical tensions. U.S. and Iran will continue nuclear talks next week in Vienna, Austria.

According to Iranian Foreign Minister Abbas Araghchi, the technical teams will meet on Monday. Political talks are expected to resume later next next week.

Iran said that it would not move its highly enriched uranium out of the country. The U.S. wants Iran to send this uranium to another country. Russia has previously indicated that it was ready to receive highly enriched uranium from Iran.

Wall Street Journal reported that U.S. demanded that Iran should destroy its key nuclear sites at Natanz, Isfahan, and Fordow. It remains to be seen whether Iran is ready for such concessions.

Iranian officials signaled that recent talks with the U.S. were positive, but the market does not believe that both sides are close to a deal. Therefore, the risks of a military strike against Iran are increasing.

Multiple countries have already told their citizens to move out of Iran, a signal which is often given ahead of an imminent danger.

Short-covering may have served as an additional bullish catalyst for oil markets today. Traders who bet that U.S. and Iran could reach a deal do not want to keep their short positions over the weekend as they will not be able to close them in case of a strike against Iran and will have to wait until markets open again.

From the technical point of view, WTI oil climbed above the resistance at $65.50 – $66.00 and is trying to settle above the $67.00 level. In case this attempt is successful, WTI oil will move towards the next resistance level at $70.00 – $70.50.

Brent Oil Tests New Highs

Brent oil gained strong upside momentum as geopolitical risks increased. Traders are focused on U.S. – Iran tensions and believe that U.S. could deliver strikes against Iran as soon as this weekend.

Brent oil is heading towards the nearest resistance level, which is located in the $73.50 – $74.00 range. A move above the $74.00 level will push Brent oil towards June 2025 highs near the $79.00 level.

Those levels were reached during the conflict between Iran and Israel. This time, the situation could be more serious for oil markets as Iran could close the Strait of Hormuz, disrupting the world’s oil flows.

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