Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Retreats As Traders Bet On Progress In U.S. – Iran Talks

Natural Gas Is Mostly Flat As Traders Focus On EIA Report

Natural gas is swinging between gains and losses as traders react to the EIA Weekly Natural Gas Storage report. The report indicated that working gas in storage increased by +101 Bcf from the previous week, compared to analyst forecast of +95 Bcf.

At current levels, stocks are +33 Bcf higher than last year and +149 Bcf above the five-year average for this time of the year.

From the technical point of view, natural gas remains stuck near the resistance levle at $3.00 – $3.05. In case natural gas manages to settle above the $3.05 level, it will move towards the next resistance level at $3.20 – $3.25.

On the support side, a move below the $3.00 level will push natural gas towards the 50 MA at $2.95. In case natural gas pulls back below the 50 MA, it will move towards the support at $2.75 – $2.80.

WTI Oil Retreats As Traders Bet On U.S. – Iran Deal

WTI oil pulled back from session highs and moved lower as traders focused on recent reports, which indicated that U.S. and Iran were moving towards a deal.

Iran has recently said that the latest U.S. proposal bridged the gap between the two sides. However, Iran’s desire to keep its uranium stockpile, as well as the country’s position over tolls in the Strait of Hormuz, remain the key obstacles for the potential deal.

Iran’s nuclear program was the key reason for the U.S. operation in the Middle East. The U.S. wants Iran to hand over its enriched uranium to prevent the country from crafting a nuclear weapon.

President Trump said that U.S. wanted to see the Strait of Hormuz opened and free of any tolls. He insisted that the Strait of Hormuz was an international waterway and should be toll-free. Meanwhile, Iran is in discussions with Oman to set up a toll system in the Strait of Hormuz.

Traders are focused on the potential progress in negotiations and reduce their long positions as the reopening of the Strait of Hormuz would likely trigger a major sell-off. That said, it remains to be seen whether U.S. and Iran will reach a deal as both sides remain far apart on the key nuclear issue.

Currently, WTI oil is trying to settle below the support at $97.00 – $97.50. In case this attempt is successful, WTI oil will head towards the next support level, which is located near May lows at $91.00 – $91.50.

Brent Oil Attempts To Settle Below $103.00

Brent oil is losing ground as traders focus on geopolitical developments and monitor headlines. The market will remain extremely volatile in the near term, so traders should be prepared for fast moves.

Brent oil attempts to settle below the support level at $103.00 – $103.50. If Brent oil manages to settle below the $103.00 level, it will move towards the next support at $96.00 – $96.50.

On the upside, Brent oil needs to settle above the key resistance level at $111.50 – $112.00 to have a chance to gain sustainable upside momentum.

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