Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Retreats Amid Progress In U.S. – Iran Talks

Natural Gas Moves Higher, Supported By Hotter Weather Forecasts

Natural gas gains ground as weather forecasts trended hotter over the weekend. Traders bet that cooling demand will increase, which will be bullish for natural gas markets.

Natural gas continues its attempts to settle above the resistance at $3.20 – $3.25. In case natural gas stays above the $3.25 level, it will head towards the next resistance at $3.40 – $3.45.

On the support side, a move below the $3.15 level will push natural gas towards the nearest support, which is located in the $3.00 – $3.05 range.

WTI Oil Is Losing Ground As U.S. And Iran Achieve Progress In Negotiations

WTI oil is under strong pressure as traders focus on progress in U.S. – Iran negotiations. Vice President JD Vance said that talks with Iran were “very good”.

U.S. Treasury waived sanctions for Iranian oil, which will provide Iran with an opportunity to boost its oil exports. U.S. has also lifted the naval blockade of Iranian ports.

According to recent reports, oil was flowing through the Strait of Hormuz at the fastest pace since the start of the war in the Middle East.

Israel’s operation against Hezbollah in Lebanon remains the biggest obstacle on the way to the comprehensive deal. According to Iranian Foreign Minister Abbas Araghchi, mediators from Pakistan and Qatar have managed to ease tensions over Lebanon. That said, it remains to be seen whether Israel and Hezbollah are ready for a deal. It should be noted that neither Israel nor Hezbollah take part in the ongoing negotiations.

From a big picture point of view, traders bet that U.S. and Iran are both focused on keeping the Strait of Hormuz opened. Iran needs money for its devastated economy, while the U.S. wants to ease inflationary pressure from high oil prices.

WTI oil settled below the support at $76.50 – $77.00 and is trying to settle below the $74.00 level. In case this attempt is successful, WTI oil will head towards the next support, which is located in the $70.50 – $71.00 range. RSI is close to the oversold territory, but there is enough room to gain additional downside momentum in the near term.

On the upside, a move above the $77.00 level will push WTI oil towards the nearest resistance level at $81.00 – $81.50.

Brent Oil Tests Support At $77.00 – $77.50

Brent oil is losing ground as traders focus on rising traffic in the Strait of Hormuz and bet that U.S. and Iran will reach a deal.

The nearest support level for Brent oil is located in the $77.00 – $77.50 range. A successful test of this level will push Brent oil towards the next support at $72.00 – $72.50.

On the upside, Brent oil needs to settle back above the resistance at $81.00 – $81.50 to have a chance to gain upside momentum in the near term. It should be noted that the bearish trend is strong, so Brent oil will need significant positive catalysts to gain sustainable upside momentum.

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