Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Rebounds As Bessent Promises Unprecedented Economic Isolation For Iran

Natural Gas Attempts To Rebound After Yesterday’s Pullback

Natural gas gained some ground as traders focused on hot weather forecasts. However, traders also focused on rising production, which limited gains.

The technical picture remains unchanged as natural gas failed to settle above the resistance level at $2.75 – $2.80. In case natural gas pulls back below the $2.70 level, it will head towards recent lows near the $2.62 level. A move below the $2.62 level will open the way to the test of the support level at $2.50 – $2.55.

On the upside, a successful test of the resistance at $2.75 – $2.80 will push natural gas towards the next resistance at $3.00 – $3.05. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

WTI Oil Moves Higher As U.S. Plans Additional Economic Measures Against Iran

WTI oil gained ground amid now signs of progress in the Middle East. Treasury Secretary Scott Bessent announced that U.S. would use unprecedented economic measures. He said that such measures had “never been seen in the history of economic isolation of a country”. According to Bessent, the naval blockade of Iranian ports will continue.

Iran’s economy is under strong pressure, and U.S. bets that Iran would be forced to get back to negotiations, which will lead to the reopening of the Strait of Hormuz.

It looks that the military scenario is off the table for now, although Iran may choose to attack oil facilities in the region in case the country believes that it could not endure economic pressure.

Oil markets prepare for a scenario which implies a de-facto closed Strait of Hormuz for weeks or months. In this scenario, global oil reserves will continue to decline. At some point, reserves could fall to a level when oil prices would skyrocket.

The key question is what happens first – Iranian economy collapses under severe sanctions or global reserves deplete, causing an unprecedented oil price spike.

In case WTI oil settles back above the support at $81.50 – $82.00, it will head towards the nearest resistance level, which is located in the $86.00 – $86.50 range. A move above the $86.50 level will push WTI oil towards the psychologically important $90.00 level.

On the support side, a move below the $81.50 level will open the way to the test of the 50 MA at $78.81. If WTI oil pulls back below the 50 MA, it will head towards the next support level at $77.50 – $78.00.

Brent Oil Attempts To Settle Above The $88.00 Level

Brent oil moved higher as traders bet that U.S. and Iran will not get back to negotiations in the near term.

From the technical point of view, Brent oil failed to settle below the support at $86.50 – $87.00 and is trying to settle above the $88.00 level. In case this attempt is successful, Brent oil will head towards the resistance level at $91.00 – $91.50. If Brent oil climbs above the $91.50 level, it will gain additional upside momentum and move towards the $95.00 level.

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