Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Rallies As Traders Shrug Off Trump’s Comments On Iran

Natural Gas Attempts To Rebound After Sell-Off

Natural gas gains ground as traders focus on reports indicating that Saudi Arabia and UAE are thinking about joining operation against Iran. In such a scenario, natural gas assets in the region could be attacked with full force, which will have a major long-term impact on global LNG market.

It should be noted that traders are not ready to fully price in such a scenario and remain mostly focused on domestic supply/demand outlook.

The nearest resistance level for natural gas is located in the $3.00 – $3.05 range. In case natural gas manages to settle above the $3.05 level, it will head towards the next resistance level at $3.25 – $3.30.

WTI Oil Rallies As U.S. Orders Airborne Soldiers To Middle East

WTI oil rebounds after strong sell-off as traders stay focused on the news from the Middle East.

Prices are moving higher as traders doubt that potential talks between U.S. and Iran will bring an end to the conflict. Meanwhile, Israel reported that it was striking Iran with full intensity.

According to a recent Axios report, U.S. and Iran may hold talks on Thursday. Axios reported that U.S. was waiting for response from Iranian officials. U.S. noted that Iran agreed to many points of the ceasefire plan.

Interestingly, the market has mostly ignored this report. It looks that traders prefer to focus on physical movement of the troops. U.S. has recently ordered to deploy 3,000 soldiers to the Middle East. Traders worry that U.S. prepares for a ground operation, which would be a huge escalation of the conflict.

The Strait of Hormuz remains de-facto closed for most ships, which is bullish for the oil market. Iran has recently noted that a container ship that failed to comply with Iranian regulations was turned back. Iran has also started charging transit fees for passing through the Strait of Hormuz to boost its revenue amid war.

Currently, WTI oil is trying to settle back above the resistance at $90.00 – $90.50. In case this attempt is successful, WTI oil will head towards the next resistance level, which is located in the $97.00 – $97.50 range.

Brent Oil Tests Resistance At $103.00 – $103.50

Brent oil gained strong upside momentum as traders bet that the war in the Middle East would not end in the near term.

President Trump has recently said that Rubio and Vance were negotiating with Iran. He added that Iran agreed that the country would never have a nuclear weapon.

These comments did not put significant pressure on oil prices. Traders have already seen many negotiations that yielded nothing or led to a military escalation. In this light, traders stay cautious and treat such comments with a grain of salt.

From the technical point of view, Brent oil moved above the resistance level at $103.00 – $103.50 level. If Brent oil stays above the $103.50 level, it will move towards the next resistance, which is located in the $108.50 – $109.00 range. RSI has recently pulled back into the moderate territory, so there is plenty of room to gain momentum in the near term.

On the support side, a move below the $100 level will push Brent oil towards the support level at $96.00 – $96.50.

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