Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Rallies As Traders Bet U.S. – Iran Talks Will Fail

Natural Gas Gains Ground Ahead Of EIA Weekly Natural Gas Storage Report

Natural gas attempts to rebound as traders prepare for tomorrow’s EIA report. The report is expected to show that working gas in storage declined by -49 Bcf from the previous week.

Current demand for natural gas is low, but weather forecasts indicate that it would increase by the end of the week.

The nearest resistance level for natural gas is located in the $3.00 – $3.05 range. If natural gas climbs above the $3.05 level, it will move towards the next resistance at $3.25 – $3.30.

On the support side, a move below the $2.90 level will push natural gas towards the support at $2.75 – $2.80.

WTI Oil Moves Higher As Traders Focus On U.S. – Iran Negotiations

WTI oil rebounds as traders focus on developments in the Middle East. U.S. has recently noted that negotiations with Iran continued. Earlier, Iran rejected the 15-point proposal from the U.S.

White House Press Secretary Karoline Leavitt said that U.S. was very close to achieving its goals in the operation in Iran. She added that if Iran did not accept defeat, President Trump would “unleash hell”.

Recent reports indicate that Vice President Vance may go to Pakistan this weekend to discuss the situation in Iran. At this point, markets do not believe that any side of the conflict is willing to negotiate a deal, despite various reports about U.S. – Iran talks.

Meanwhile, the Strait of Hormuz remains closed, which is bullish for oil markets. Iran said that the Strait of Hormuz would not return to its previous state, which means that the country plans to allow passage for a fee after the conflict ends.

However, this would be impossible if U.S. gains control over key areas. For markets, this scenario is bullish as such control would mean a ground operation in Iran, which would be a huge escalation with unpredictable results.

The situation becomes more difficult as days go by. Some countries have already faced energy shortages. Iran bets that economic pressure will force the U.S. and Israel to back down. There are no signs indicating that U.S. is ready to move away from its goals. Israel’s position remains unchanged as well.

Currently, WTI oil is trying to settle above the resistance at $90.00 – $90.50. In case this attempt is successful, WTI oil will move towards the next resistance level, which is located in the $97.00 – $97.50 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

Brent Oil Attempts To Settle Back Above $102.00

Brent oil gained upside momentum as traders bet on additional escalation in the Middle East.

Traders worry that negotiations will fail and U.S. may start a ground operation in Iran.

The nearest resistance level for Brent oil is located in the $103.00 – $103.50 range. A successful test of this level will push Brent oil towards the next resistance at $108.50 – $109.00. If Brent oil manages to settle above the $109.00 level, it will head towards recent highs near the $119.00 level.

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