Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Retreats As U.S. Prepares To Release Funds From Iran’s Frozen Accounts

Natural Gas Tests The $3.15 Level

Natural gas pulled back after an unsuccessful attempt to settle above the resistance level at $3.20 – $3.25. Currently, natural gas is trying to settle back below the $3.15 level.

In case this attempt is successful, natural gas will head towards the nearest support level, which is located in the $3.00 – $3.05 range A move below the $3.00 level will push natural gas towards the $2.80 level. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.

On the upside, natural gas needs to settle back above the $3.25 level to gain upside momentum in the near term. In this case, natural gas will head towards the next resistance at $3.40 – $3.45.

WTI Oil Moves Lower As U.S. And Iran Discuss The Use Of Iran’s Frozen Funds

WTI oil remains under pressure as traders focus on U.S. – Iran negotiations. President Trump has recently said that Iran could use funds from frozen accounts to buy food and medical supplies from the U.S. He added that  unfrozen funds would remain under U.S. control.

According to Trump, Iran agreed to “highest level Nuclear inspections long into the future”.

In turn, Iran said that it would use the funds as it would deem appropriate. Iran added that it did not meet with the International Atomic Energy Agency and had no plans to let IAEA to inspect Iran’s nuclear facilities.

As usual, both sides of negotiations present different pictures of the future deal. However, the sole fact of negotiations serves as a bearish catalyst for oil markets as oil has already started flowing through the Strait of Hormuz. Traders expect that flows of oil would increase as more vessels and companies get back to business.

It should be noted that U.S. dollar’s rally served as an additional bearish catalyst for oil markets today. Strong dollar is bearish for dollar-denominated assets, including oil. The American currency is moving higher as traders bet that Fed will be forced to raise rates to fight inflation.

Currently, WTI oil is trying to settle below the $73.00 level. In case this attempt is successful, WTI oil will head towards the nearest support, which is located in the $70.50 – $71.00 range.

Brent Oil Attempts To Settle Below The $77.00 Level

Brent oil remains under pressure as traders bet that U.S. and Iran will ultimately reach a deal. At this point, the market lacks positive catalysts as traffic through the Strait of Hormuz continues to increase.

From the technical point of view, Brent oil attempts to settle below the support at $77.00 – $77.50. In case this attempt is successful, Brent oil will head towards the next support level, which is located in the $72.00 – $72.50 range. RSI has recently moved into the oversold territory, but there is enough room to gain additional downside momentum in the near term.

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