Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Retreats As Bessent Unveils The Plan On Iran

Natural Gas Remains Stuck Below The $2.80 Level

Natural gas is mostly flat as weather forecasts indicate that demand will stay at high levels this week. Strong production and high storage levels continue to serve as negative catalysts for natural gas markets.

From the technical point of view, natural gas continues its attempts to settle above the resistance level at $2.75 – $2.80. If natural gas manages to settle above the $2.80 level, it will head towards the 50 MA at $2.96. A move above the 50 MA will push natural gas towards the resistance level at $3.00 – $3.05.

On the support side, a move below the $2.75 level will push natural gas towards $2.70. If natural gas settles below the $2.70 level, it will move towards August lows near the $2.62 level.

WTI Oil Moves Lower As Traders React To Bessent’s Comments On Iran

WTI oil pulls back as traders focus on U.S. plan to put additional economic pressure on Iran.

Treasury Secretary Scott Bessent said that any country doing business with Iran faced risks of U.S. sanctions. He added that President Trump was calling world leaders with requests to cease their interactions with Iran. According to Bessent, countries will have a defined timeline to cease their economic cooperation with Iran.

Separately, U.S. plans to impose a 7.5% tariff on Chinese goods due to China’s excess manufacturing capacity. China is the key buyer of Iranian oil, so it is possible that another round of a U.S. – China trade war is in the making.

At this point, the market does not believe that China will bow down to U.S. demands as the country has successfully gone through the recent trade war with the U.S.

From a big picture point of view, traders are selling the news. The market was expecting the threat of secondary sanctions from the U.S., and traders sell oil after Bessent confirmed the plan.

WTI oil has made several attempts to settle above the resistance level at $86.00 – $86.50 but these attempts yielded no results. Currently, WTI oil is trying to settle back below the $85.00 level. If WTI oil manages to settle below $85.00, it will head towards the support at $81.50 – $82.00. A move below the $81.50 level will open the way to the test of the 50 MA at $78.62.

On the upside, WTI oil needs to settle above the $86.50 level to have a chance to gain upside momentum in the near term. In this case, WTI oil will head towards the resistance level at $91.00 – $91.50.

Brent Oil Tests The $92.00 Level

Brent oil pulled back as traders took some profits off the table after U.S. announced its plans on Iran.

The nearest support level for Brent oil is located in the $91.00 – $91.50 range. If Brent oil pulls back below the $91.00 level, it will head towards the next support at $86.00 – $86.50.

A move below the $86.00 level will push Brent oil towards the 50 MA at $83.47. RSI is in the moderate territory, so there is plenty of room to gain downside momentum in case the right catalysts emerge.

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