Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Retreats As Dollar Rallies After NFP Report

Natural Gas Pulls Back Ahead Of The Weekend

Natural gas is losing ground as traders react to global commodity market sell-off, which was triggered by the strong U.S. jobs data. Traders worry that Fed will start the new rate hike cycle soon.

From the technical point of view, natural gas failed to settle above the $3.40 level and pulled back towards the $3.20 level. If natural gas declines below $3.20, it will move towards the support 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.

WTI Oil Tests Support At $91.00 – $91.50

WTI oil is losing ground as traders react to U.S. economic data and stay focused on the news from the Middle East.

U.S. dollar rallied against a broad basket of currencies after the release of the strong Non Farm Payrolls report. The report showed that the U.S. economy added 172,000 jobs in May, compared to analyst forecast of 85,000.

The report highlighted the strength of the U.S. economy, so traders have started to prepare for rate hikes from the Fed. Dollar’s rally is bearish for oil as it makes it more expensive for global buyers.

There were no signs of progress in U.S. – Iran talks as traders waited for the potential deal. On Thursday, President Trump said that negotations were in the “final” stages. He did not provide any details. Earlier, Iran said that the two sides continued to negotiate but there was no “tangible progress”.

Israel and Hezbollah continued to fight against each other as Hezbollah did not accept truce negotiated by Israel and Lebanon. It should be noted that the official government of Lebanon does not control Hezbollah. Nevertheless, recent reports indicate that the scale of fighting has diminished, which could be viewed as a positive sign.

Israel’s operation against Hezbollah is a major obstacle on the way to a deal as Iran wants to reach a complete Israel – Hezbollah ceasefire. Despite all problems, traders are ready to bet that U.S. and Iran will ultimately negotiate a deal.

Currently, WTI oil is trying to settle below the support level at $91.00 – $91.50. In case this attempt is successful, WTI oil will head towards the next support, which is located in the $85.00 – $85.50 range.

On the upside, WTI oil needs to settle above the resistance at $97.00 – $97.50 to gain sustainable upside momentum in the near term.

Brent Oil Retreats As Traders Bet On Hawkish Fed

Brent oil is under pressure as traders focus on strong dollar and bet on a U.S. – Iran deal.

The nearest support level for Brent oil is located in the $91.00 – $91.50 range. A successful test of this level will open the way to the test of the next support, which is located at April lows at $86.00 – $86.50.

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