Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Rallies As Trump Says He Is Losing Patience With Iran

Natural Gas Tests New Highs

Natural gas gains ground as traders focus on the recent EIA report and monitor the dynamics of weather forecasts. Demand for natural gas is expected to stay moderate in the upcoming days.

The nearest resistance level for natural gas is loсated 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 at $3.20 – $3.25. RSI remains 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 $2.90 level will push natural gas back towards the support level at $2.75 – $2.80. This support level has been tested several times and proved its strength.

WTI Oil Soars Amid Rising Geopolitical Tensions

WTI oil rallied as traders focused on the lack of progress in U.S. – Iran negotiations. Trump – Xi summit concluded without any news on Iran, and traders worry that U.S. will restart the military operation in the Middle East.

The Strait of Hormuz remains blocked, and the situation in the physical markets gets worse day by day. Iran has listed its demands, which look unrealistic. Meanwhile, U.S. continues its naval blockade of Iranian ports.

Iran’s Foreign Minister Abbas Araghchi has recently said that Tehran had “no trust” in the U.S. and will continue negotiations in case the U.S. has a serious offer. He added that vessels can pass through the Strait of Hormuz except those at war with Iran.

However, reports suggest that the number of vessels passing through the Strait of Hormuz has dropped dramatically compared to pre-war levels, so the Strait remains de-facto blocked.

U.S. President Trump noted that his patience with Iran was running out and that he wanted Iran to reopen the Strait.

At this point, the situation looks like a stalemate, so traders bet that U.S. may restart the military operation to put more pressure on Iran and force the country to reopen the Strait of Hormuz. This scenario will be bullish for oil markets.

WTI oil settled above the resistance at $102.00 – $102.50 and is trying to settle above the $105.00 level. In case this attempt is successful, WTI oil will head towards the next resistance level, which is located in the $107.50 – $108.00 range.

Brent Oil Attempts To Settle Above The $110 Level

Brent oil tested new highs amid rising geopolitical tensions. Traders have started to price in the risk of an additional military operation in the Middle East.

From the technical point of view, Brent oil is trying to settle above the $110 level. In case this attempt is successful, Brent oil will move towards the resistance at $111.50 – $112.00.

A move above the $112.00 level will push Brent oil towards the key resistance at $119.50 – $120.00. In case Brent oil settles above the $120.00 level, it may quickly gain strong upside momentum and move towards the $125.00 level.

If you’d like to know more about how commodity markets work, please visit our educational area.