Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Rallies Amid U.S. – Iran Tensions

Natural Gas Remains Stuck Near The $3.00 Level

Natural gas prices are mostly flat as traders react to the EIA Weekly Natural Gas Storage Report.

The report indicated that working gas in storage decreased by -144 Bcf from the previous week, compared to analyst forecast of -146 Bcf.

At current levels, stocks are -59 Bcf less than last year and -123 Bcf below the five-year average for this time of the year.

Natural gas has recently made an attempt to settle below the nearest support level at $3.00 – $3.05 but failed to develop sufficient downside momentum.

In case natural gas manages to settle back above $3.05, it will head towards the $3.30 level. A move above $3.30 will push natural gas towards the resistance level, which is located in the $3.50 – $3.55 range.

WTI Oil Tests New Highs

WTI oil rallies as traders focus on U.S – Iran tensions. Traders bet that U.S. may strike Iran in the near term.

Iran has recently conducted naval drills in the Strait of Hormuz, and it looks that the country is ready to close the world’s key oil supply route in case of a conflict.

Iran is expected to come up with nuclear deal proposals within two weeks, but traders doubt that Donald Trump would give Iran so much time. The U.S. continues to increase its military presence in the Middle East, which indicates that the country is ready for any scenario.

It should be noted that WTI oil is trading well below highs that were reached in June 2025 during Israel – Iran conflict. Thus, there is plenty of room to gain momentum in case a new conflict begins. If Iran closes the Strait of Hormuz, oil could rally towards triple-digit levels.

Today, traders also focused on the EIA Weekly Petroleum Status Report. The report indicated that crude inventories decreased by -9 million barrels from the previous week, compared to analyst consensus of +2.1 million barrels.

Gasoline inventories declined by -3.2 million barrels, while analysts expected that they would decrease by -0.3 million barrels. Distillate fuel inventories decreased by -4.6 million barrels from the previous week.

Crude oil imports declined by 281,000 bpd, averaging 6.5 million bpd. Over the past four weeks, crude oil imports averaged 6.3 million bpd.

Strategic Petroleum Reserve increased from 415.2 million barrels to 415.4 million barrels as U.S. bought some oil for strategic reserves.

Domestic oil production increased from 13.713 million bpd to 13.735 million bpd. Some analysts argue that strong domestic production levels increase the risks of a military operation in Iran as the U.S. can easily deal with a short-term supply crunch in the global market.

Currently, WTI oil is trying to settle above the resistance at $65.50 – $66.00. In case this attempt is successful, WTI oil will move towards the next resistance level, which is located in the $70.00 – $70.50 range.

Brent Oil Soars As Geopolitical Premium Increases

Brent oil tests new highs as traders focus on geopolitical risks. The situation in Iran will remain the key driver for oil markets in the upcoming trading sessions.

Traders increase their long positions ahead of the weekend to protect themselves from potential geopolitical developments.

From the technical point of view, Brent oil climbed above the resistance at $69.50 – $70.00 and is trying to settle above the $72.00 level. If Brent oil settles above $72.00, it will move towards the resistance level at $73.50 – $74.00.

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