Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Retreats From Session Highs Amid Signs Of Progress In U.S. – Iran Talks

Natural Gas Retreats As Traders Focus On The EIA Report

Natural gas pulled back as traders reacted to the EIA Weekly Natural Gas Storage report.

The report indicated that working gas in storage decreased by -52 Bcf from the previous week, compared to analyst forecast of -36 Bcf.

At current levels, stocks are +141 Bcf higher than last year and -7 Bcf below the five-year average for this time of the year.

From the technical point of view, natural gas is heading towards the nearest support level, which is located in the $2.70 – $2.75 range. A move below the $2.70 level will push natural gas towards the $2.50 level. RSI is in the moderate territory, and there is plenty of room to gain additional momentum in case the right catalysts emerge.

WTI Oil Pulls Back As Traders React To U.S. – Iran Negotiations

WTI oil pulled back from session highs amid reports indicating that U.S – Iran negotiations have ended and achieved substantial progress. According to the reports, negotiations will continue next week in Vienna, Austria.

Earlier, Iran said that nuclear talks progressed intensively and seriously. However, traders worried that negotiators would not achieve progress and that U.S. would decide to strike targets in Iran over the weekend.

It should be noted that traders remain cautious in absence of comments from U.S. officials. At this point, traders are not ready to bet that U.S. and Iran will reach a deal and that U.S. will move its aircraft carriers out of the Middle East.

Traders have also started to prepare for OPEC+ meeting on Sunday, which will outline the group’s production policy for April. Interestingly, some members expect that OPEC+ will agree to a modest production increase. This scenario will be bearish for oil markets.

WTI oil remains stuck near the key resistance level at $65.50 – $66.00. WTI oil has already made multiple attempts to settle above this level, but they yielded no results.

If WTI oil manages to settle above $66.00, it will move towards the next resistance level, which is located in the $70.00 – $70.50 range.

On the support side, WTI oil needs to settle below $65.50 to have a chance to gain sustainable downside momentum in the near term. A move below the $65.50 level will push WTI oil towards the 50 MA at $61.28.

Brent Oil Moved Away From Session Highs

Brent oil is moving back and forth in a wide trading range as traders react to U.S. – Iran negotiations.

It looks that traders are not ready to increase their short positions as risks are too high. At the same time, the market is not ready for an upside move as negotiations are set to continue.

in this environment, Brent oil trading may stay choppy until the next week as traders are not ready for big moves amid uncertainty.

Brent oil has recently made another attempt to settle above the $72.00 level but lost momentum and pulled back towards $71.00. If Brent oil stays below the $71.00 level, it will get to another test of the nearest support level, which is located in the $69.50 – $70.00 range. A move below the $70.00 level will open the way to the test of the $67.00 level.

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