Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Retreats As Israel And Lebanon Agree To Implement Ceasefire

Natural Gas Moves Higher As Inventory Build Misses 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 +95 Bcf from the previous week, compared to analyst forecast of  +101 Bcf.

At current levels, stocks are -3 Bcf less than last year and +138 Bcf above the five-year average for this time of the year.

Natural gas climbed above the resistance at $3.20 – $3.25 and moved towards the $3.40 level. In case natural gas manages to settle above $3.40, it will head towards the nearest resistance, which is located in the $3.50 – $3.55 range.

On the support side, a move below $3.20 will push natural gas towards the nearest support, which is located in the $3.00 – $3.05 range.

WTI Oil Retreats As Traders Focus On Israel – Lebanon Ceasefire

WTI oil pulled back as traders reacted to Israel – Lebanon ceasefire. It should be noted that Israel is fighting against Hezbollah, a militant group which is not controlled by the official Lebanon government. Hezbollah rejected truce.

Nevertheless, traders viewed Israel’s decision to negotiate with the official government of Lebanon as a sign that the country is ready to stop its operation against Hezbollah in order to support U.S. – Iran negotiations.

Yesterday, Iranian Foreign Minister Abbas Araghchi said that there was no tangible progress in negotiations between Iran and U.S. Iran continues to insist that Israel must stop its actions in Lebanon.

Clashes between Israel and Hezbollah continued, although at a moderate pace. President Trump noted that “in that part of the world, ceasefire is when you’re shooting in a more moderate manner.” His comments highlighted his desire to continue negotiations with Iran in order to reopen the Strait of Hormuz.

U.S. House voted to halt the war with Iran, which showed that the conflict was unpopular. The vote will not stop U.S. operations against Iran but indicates that pressure on Trump to reach a deal is growing day by day.

WTI oil failed to settle above the resistance at $97.00 – $97.50 and pulled back towards the $93.00 level. In case WTI oil declines below the $93.00 level, it will head towards the support at $91.00 – $91.50. A successful test of this support level will open the way to the test of the next support at $85.00 – $85.50.

Brent Oil Attempts To Settle Below The $95.00 Level

Brent oil pulled back as traders bet that U.S. and Iran will reach a deal despite various problems. Traders noted that recent escalation between U.S. and Iran was not continued, which means that the ceasefire regime remained intact.

From the technical point of view, Brent oil failed to settle above the resistance level at $96.00 – $96.50. In case Brent oil declines below the $95.00 level, it will head towards the nearest support, which is located in the $91.00 – $91.50 range. RSI is in the moderate territory, so there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

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