Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Rallies As Traders Worry That Iran Will Exit Negotiations

Natural Gas Tests Support At $3.20 – $3.25

Natural gas is under strong pressure as traders focus on bearish changes in weather forecasts. Comfortable weather will lead to low demand for natural gas.

Currently, natural gas is trying to settle below the support level at $3.20 – $3.25. In case this attempt is successful, natural gas will head towards the next support level, which is located in the $3.00 – $3.05 range.

On the upside, natural gas needs to settle back above the $3.25 level to gain upside, momentum in the near term. A move above $3.25 will push natural gas towards recent highs near the $3.40 level. If natural gas climbs above $3.40, it will head towards the resistance level at $3.50 – $3.55.

WTI Oil Soars Amid Rising Tensions In The Middle East

WTI oil rallied as reports indicated that Iran halted talks with the U.S. According to the reports, Iran will suspend negotiations until Israel stops its operation against Hezbollah in Lebanon.

President Trump said that Israel and Hezbollah agreed to stop attacking each other. He added that he talked to Israeli Prime Minister Bejamin Netaynyahu and people from Hezbollah. At this point, neither Israel nor Hezbollah confirmed the truce.

Trump also said that talks with Iran were continuing at a rapid pace and noted that Iran did not tell him that the country was suspending negotiations. As usual, the sides of the conflict present conflicting pictures of the situation, which is normal for challenging negotiations.

It should be noted that Iran wants Israel to stop attacking Hezbollah, which is believed to be Iran’s key asset in the region. In case Israel and Hezbollah agree to a ceasefire, the chances of a successful U.S. – Iran deal will increase.

That said, it remains to be seen whether Israel is ready to stop operation against the militant group. In addition, it is not clear whether Hezbollah will stop attacking Israel if any deal is reached.

Oil markets have started to price in the potential escalation in the region. Trump’s comments did not calm traders who are waiting for confirmation from all sides of the conflict.

From the technical point of view, WTI oil is trying to settle above the resistance level at $91.00 – $91.50. 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 $96.00 – $96.50

Brent oil gained strong upside momentum as traders focused on rising tensions in the Middle East. Most likely, short-covering has also served as a material bullish catalyst for WTI oil in today’s trading session.

In case Brent oil manages to settle above the resistance at $96.00 – $96.50, it will head towards the psychologically important $100.00 level. A move above this level will push Brent oil towards the 50 MA at $103.33.

On the support side, a move below the $94.00 level will push Brent oil towards the nearest support, which is located in the $91.00 – $91.50 range.

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