Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Rallies As Trump Says He Is In No Hurry For Iran Deal

Natural Gas Pulls Back As Traders React To Changes In Weather Forecasts

Natural gas is losing ground as traders focus on cooler weather forecasts. Robust production continues to serve as a major bearish catalyst for natural gas markets.

In case natural gas stays below the $2.70 level, it will head towards the $2.62 level. A move below $2.62 will push natural gas towards the support level at $2.50 – $2.55.

On the upside, the nearest resistance level for natural gas is located in the $2.75 – $2.80 range. A successful test of this level will push natural gas towards the next resistance at $3.00 – $3.05.

WTI Oil Moves Higher As Traders Reduce Bets On Iran Deal

WTI oil  gains ground as President Trump said that he was in no hurry for a deal. According to Trump, the naval blockade of Iranian ports puts significant pressure on the country.

Trump also noted that U.S. would bomb Oman in case it “gets in the way”. He did nor provide additional details. In recent weeks, Oman and Iran discussed the management of the Strait of Hormuz.

Iran has recently said that a “shipping map” for the Strait of Hormuz has been finalized. However, Iran is not ready to reopen the world’s key waterway until U.S. lifts naval blockade of the country’s ports.

On Saturday, Israel launched strikes against Hezbollah in Lebanon in retaliation for an attack from the militant group. Rising tensions in Lebanon provided additional support to oil prices. It should be noted that Israel has recently delivered strikes against Hamas in Gaza, while Houthis attacked ships in the Red Sea. Put simply, the Middle East remains a volatile place, which is bullish for oil markets.

WTI oil settled above the support level at $81.50 – $82.00 and is trying to settle above the $84.00 level. In case this attempt is successful, WTI oil will head towards the nearest resistance, which is located in the $86.00 – $86.50 level. A move above $86.50 will open the way to the test of the psychologically important $90.00 level. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.

On the support side, a move below the support at $81.50 – $82.00 will push WTI oil towards the 50 MA at $78.67. In case WTI oil declines below the 50 MA, it will head towards the support level at $77.50 – $78.00.

Brent Oil Tests The $90.00 Level

Brent oil moved higher as traders focused on rising tensions in the Middle East. Traders bet that U.S. and Iran will not agree to a deal in the near term. The market has also started to price in risks of additional escalation.

The nearest resistance level for Brent oil is located in the $91.00 – $91.50 range. A successful test of this level will push Brent oil towards the next resistance at $95.50 – $96.00. RSI is in the moderate territory, so there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

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