Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Rebounds From Session Lows As Traders React To Trump – Xi Meeting

Natural Gas Moves Higher As EIA Report Meets Estimates

Natural gas gains ground as traders react to the EIA Weekly Natural Gas Storage Report. The report indicated that working gas in storage increased by +85 Bcf from the previous week, in line with analyst estimates. Bulls feared that the report will exceed analyst expectations.

At current levels, stocks are +51 Bcf higher than last year and +140 Bcf above the five-year average for this time of the year. High stocks continue to serve as the key bearish catalyst for natural gas markets.

From the technical point of view, natural gas continues its attempts to settle above the $2.90 level. If natural gas manages to settle above the $2.90 level, it will move towards the 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 Rebounds From Session Lows

WTI oil is swinging between gains and losses as traders focus on Trump – Xi meeting in China.

President Trump siad that China offered help with Iran. China has neither confirmed nor denied Trump’s words. Trump also added that Xi promised not to deliver military equipment to Iran.

China is the key buyer of Iranian oil, so the country has leverage over Iran. That said, it remains to be seen whether China wants to put pressure on Iran. It should be noted that Chinese vessels will be able to pass through the Strait of Hormuz after negotiations between Iran and China.

Interestingly, a vessel has been seized by someone near the United Arab Emirates. At this point, it is not clear who has taken control over the vessel. The ship’s identity was not disclosed in recent reports.

U.S. claimed that it had destroyed 90% of Iran’s inventory of naval mines, limiting its ability to block the Strait of Hormuz. However, the strait remains de-facto blocked as Iran has drones and missiles. Few shipowners and crews are ready to take the risks to pass without Iran’s permission.

At this point, the market does not know how to interpret the results of the meeting between Trump and Xi. While China has probably promised to talk to Iran about the Strait of Hormuz, it remains to be seen whether Xi has any interest to put pressure on Iran.

WTI oil remains stuck below the resistance at $102.00 – $102.50. If WTI oil manages to settle above the $102.50 level, it will head towards the next resistance, which is located in the $107.50 – $108.00 range.

Brent Oil Is Mostly Flat As Traders Digest Trump’s Comments

Brent oil was mostly flat as traders were not ready for big moves during Trump – Xi summit.

The technical picture was unchanged as Brent oil did not pull back below the nearest support, which is located in the $103.00 – $103.50 range. If Brent oil climbs above the $108.00 level, it will gain additional upside momentum and move towards the resistance at $111.50 – $112.00.

On the support side, a successful test of the support at $103.00 – $103.50 will open the way to the test of the next support level at $97.00 – $97.50.

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