Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Retreats As Traders Ignore Iran’s Attack On A U.S. Helicopter

Natural Gas Stabilizes After Pullback

Natural gas is swinging between gains and losses as traders evaluate their next moves after the pullback.

From the technical point of view, natural gas needs to settle above the resistance at $3.20 – $3.25 to gain upside momentum in the near term. In this case, natural gas will head towards the $3.40 level.

On the support side, the nearest support level for natural gas is located in the $3.00 – $3.05 range. A move below the $3.00 level will open the way to the test of the next support level, which is located in the $2.75 – $2.80 range. RSI is in the moderate territory, so there is plenty of room to gain additional downside momentum in the near term.

WTI Oil Tests New Lows

WTI oil is losing ground as traders ignore Trump’s recent comments on Iran. Trump said that an Apache helicopter was attacked by Iran while patrolling over the Strait of Hormuz.

According to Trump, helicopter pilots are safe and uninjured. He added that “the United States must, of necessity, respond to this attack.”

Oil prices spiked when Trump’s comment was released but quickly pulled back. U.S. and Iran have previously attacked each other during the ceasefire, but these incidents did not stop negotiations.

Meanwhile, U.S. Energy Secretary Chris Wright said that oil exports through the Strait of Hormuz were “rising very meaningfully”. He added that they would continue to rise.

Wright also said that global inventories were higher than previously expected and noted that China’s imports fell by about 4 million bpd in May.

Markets also react to the recent escalation between Iran and Israel. Both countries halted attacks against each other after Trump’s efforts to calm the situation. Traders view it as a sign that U.S. and Iran are moving closer to a deal.

WTI oil failed to settle above the resistance at $91.00 – $91.50 and is trying to settle below the $88.00 level. In case this attempt is successful, WTI oil will head towards the nearest support level, which is located in the $85.00 – $85.50 range.

On the upside, a move above the $91.50 level will push WTI oil towards the resistance level at $97.00 – $97.50.

Brent Oil Tests Support At $91.00 – $91.50

Brent oil is losing ground as traders bet that U.S. and Iran will reach a deal soon. Traders also focus on Wright’s comments regarding rising traffic in the Strait of Hormuz.

From a big picture point of view, market sentiment remains bearish as traders have already ignored Iran’s attack on Israel and Iran’s attack on a U.S. helicopter.

Currently, Brent oil is trying to settle below the support at $91.00 – $91.50. In case this attempt is successful, Brent oil will move towards the next support level, which is located in the $86.00 – $86.50 range.

On the upside, a move above the $93.00 level will push Brent oil towards the resistance at $96.00 – $96.50.

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