Natural Gas Is Under Strong Pressure
Natural gas is under pressure as weather forecasts indicate that demand will be low in the upcoming days.
Currently, natural gas is trying to settle below the support level at $3.00 – $3.05. In case this attempt is successful, natural gas will move towards the 50 MA at $2.91. If natural gas manages to settle below the 50 MA, it will head towards the next support, which is located in the $2.75 – $2.80 range.
On the upside, a move above the $3.10 level will open the way to the test of the resistance level at $3.20 – $3.25.
WTI Oil Moves Lower As Saudi Arabia Resumes Yanbu Oil Loading
WTI oil pulled back as Saudi Arabia resumed loading at Yanbu after the successful restart of the East-West pipeline. Traders bet that supply will increase as Yanbu is used to bypass the Strait of Hormuz.
Interestingly, traders are not worried about potential threats from the Houthis, which have recently achieved significant military success in Yemen.
Traders also focus on indirect talks between U.S. and iran. According to recent reports, Qatar serves as mediator.
Iran’s Araghchi has recently said that negotiations had become more “serious”. However, he added that there was no change in Iran’s demands.
It remains to be seen whether U.S. is ready to accept Iran’s demands as the country wants to control the Strait of Hormuz in the future. The U.S. is also focused on Iran’s nuclear program, which was the key reason for the military operation against Iran. It is not clear whether Iran is ready for serious progress in nuclear talks.
It looks that traders are optimistic that physical supply of oil will increase, and the market will avoid the worst-case scenario.
WTI oil is moving towards the support level at $88.50 – $89.00. In case WTI oil declines below the $88.50 level, it will head towards the next support, which is located in the $84.50 – $85.00 range. RSI is in the moderate territory, so there is plenty of room to gain additional downside momentum in case the right catalysts emerge.
On the upside, WTI oil needs to settle above the $93.00 level to have a chance to gain upside momentum in the near term. In this case, WTI oil will head towards recent highs near the $97.00 level.
Natural Gas Price Forecast
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See all Natural Gas forecastsBrent Oil Tests The $103.00 Level
Brent oil is losing ground as traders focus on U.S. – Iran talks and react to the restart of Saudi Arabia’s key pipeline.
The nearest support level for Brent oil is located in the $101.50 – $102.00 range. If Brent oil declines below the $101.50 level, it will head towards the $100.00 level. A move below $100.00 will open the way to the test of the support at $97.00 – $97.50. Traders should note that Brent oil will stay extremely sensitive to geopolitical news, so they should be prepared for fast moves.
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