Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Rebounds From Session Lows As Traders Stay Cautious Ahead Of The Weekend

Natural Gas Tests Resistance At $2.75 – $2.80

Natural gas continues its attempts to settle above the resistance level at $2.75 – $2.80 as traders stay focused on yesterday’s EIA report, which indicated that working gas in storage increased by +28 Bcf from the previous week.

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

On the support side, a move below the $2.70 level will open the way to the test of the support at $2.50 – $2.55.

WTI Oil Rebounds As Traders Focus On Escalation Risks

WTI oil rebounded from session lows as traders remained focused on the situation in the Middle East.

President Trump has recently said that he was losing confidence in negotiators from the Iranian side. He added that they lied and noted that U.S. would hit Iran very hard. According to Trump, at some point Iran would say that they can’t take it anymore.

Some traders are ready to bet that U.S. will strike Iran hard over the weekend, when markets are closed. There are no signs indicating that Iran is ready for a deal. Meanwhile, the Strait of Hormuz is de-facto closed, although some vessels manage to get through the world’s key oil supply route.

The technical picture remains unchanged as WTI oil is stuck below the resistance level at $85.50 – $86.00. In case WTI oil climbs above the $86.00 level, it will head towards the next resistance level at $90.50 – $91.00. A move above the $91.00 level will push WTI oil towards the $96.00 level.

On the support side, WTI oil needs to settle below the support level at $81.50 – $82.00 to have a chance to gain additional downside momentum in the near term. In this case, WTI oil will head towards recent lows near the $78.00 level.

Brent Oil Attempts To Settle Back Above The $88.00 Level

Brent oil pulled back as traders tried to guess whether U.S. and Iran will continue negotiations. From a big picture point of view, geopolitical developments remain the key catalyst for Brent oil. Recent fluctuations in bond and forex markets had no impact on oil prices as traders remained focused on the situation in the Strait of Hormuz.

In case Brent oil manages to settle back above the $88.00 level, it will head towards the nearest resistance level, which is located in the $90.50 – $91.00 range. A successful test of this level will push Brent oil towards recent highs near the $93.00 level.

On the support side, a move below the support at $86.50 – $87.00 will open the way to another test of the 50 MA at $85.30. If Brent oil declines below the $85.30 level, it will head towards the support level at $82.00 – $82.50.

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