Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Retreats From Session Highs As Iran And Israel Halt Attacks

Natural Gas Remains Under Pressure

Natural gas pulls back as traders react to disappointing weather forecasts and bet that demand will not grow in the near term.

The nearest support level for natural gas is located in the $3.00 – $3.05 range. In case natural gas declines below the $3.00 level, it will head towards the next support, which is located in the $2.75 – $2.80 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.

On the upside, natural gas must settle above the resistance at $3.20 – $3.25 to have a chance to gain upside momentum in the near term. A move above the $3.25 level will push natural gas towards the $3.40 level.

WTI Oil Tests Support At $91.00 – $91.50

WTI oil pulled back from session highs as traders reacted to geopolitical developments.

Earlier, Iran launched strikes against Israel. According to Iran, the country attacked Israel due to Israel’s operation against Hezbollah in Lebanon. In turn, Israel hit targets in Iran.

President Trump managed to calm the situation after calling Israel’s Prime Minister Benjamin Netanyahu. Israel said that it would halt attacks on Iran but added that the country would respond in case it is attacked again. Netanyahu added that he told Trump that Israel had full right for self-defense.

Iran has already announced the end of its operation against Israel. Pakistan, which serves as a mediator between U.S. and Iran, urged everyone to exercise restraint. U.S. – Iran negotiations continued, but it remains to be seen whether the sides will be able to reach a deal in the near term.

Israel’s operation in Lebanon and Hezbollah’s attacks against Israel are key obstacles on the way to the potential deal between U.S. and Iran. Earlier, Hezbollah rejected the conditional ceasefire agreement between Israel and the official government of Lebanon. It should be noted that Lebanon’s government does not control Hezbollah, which is labeled as a foreign terrorist organization by the U.S.

The market continues to prepare for the potential U.S. – Iran deal. Traders quickly sold the rally after Trump announced that Israel and Iran will end operations against each other.

Currently, WTI oil is trying to settle back below the support at $91.00 – $91.50. In case this attempt is successful, WTI oil will head towards the next support level, which is located in the $85.00 – $85.50 range.

Brent Oil Pulls Back From Session Highs

Brent oil made an attempt to settle above the resistance at $96.00 – $96.50 but lost momentum and pulled back as Israel and Iran halted military operations against each other.

The nearest support level for Brent oil is located in the $91.00 – $91.50 range. A successful test of this level will open the way to the test of the next support at $86.00 – $86.50.

On the upside, a move above the $96.50 level will push Brent oil towards the psychologically important $100.00 level. If Brent oil climbs above $100.00, it will head towards the 50 MA at $102.36.

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