Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Retreats From Session Highs As Trump Hints U.S. May Restart Iran Talks

Natural Gas Tests The 50 MA At $2.90

Natural gas gains ground as traders focus on warm weather and high demand for LNG due to problems in the Middle East.

Currently, natural gas is trying to settle above the 50 MA at $2.90. In case this attempt is successful, natural gas will move towards the resistance level, which is located in the $3.00 – $3.05 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

On the support side, natural gas needs to settle below the $2.75 level to have a chance to gain downside momentum in the near term. In this case, natural gas will head towards the support level at $2.60 – $2.65.

WTI Oil Moves Away From Session Highs

WTI oil tested new highs but lost momentum and pulled back as traders reacted to recent developments in the Middle East and focused on President Trump’s posts.

According to recent reports, a Saudi East-West Pipeline suffered damage after an attack and would not work for several weeks. This is a major blow to Saudi Arabia’s efforts to redirect oil flows away from the Strait of Hormuz.

It should be noted that U.S. Energy Secretary Chris Wright said that the pipeline would get back to work “very soon”. The pipeline’s operating capacity is about 7 million bpd.

President Trump announced that Russia and Ukraine agreed to halt attacks on energy infrastructure. According to Trump, these attacks were the key reason for high diesel prices. Russia, which is the world’s second-largest exporter of diesel, banned exports to redirect flows to local market amid Ukrainian attacks.

Ukraine’s President Zelenskiy said that the country would suspend attacks against Russia’s energy infrastructure in case Russia stopped attacking Ukrainian energy facilities. Russia did not comment on this issue at the time of writing. It looks that there is no deal yet.

From the technical point of view, WTI oil made an attempt to settle above the resistance level at $102.50 – $103.00 but failed to develop sufficient momentum and pulled back towards the $101.00 level. In case WTI oil settles below $101.00, it will head towards the psychologically important $100.00 level. A move below $100.00 will open the way to the test of the support at $97.50 – $98.00.

Brent Oil Attempts To Settle Below $105.00

Brent oil has also pulled back from session highs as traders rushed to take profits off the table despite problems of Saudi’s pipeline. President Trump hinted that U.S. may restart negotiations with Iran, which was bearish for oil markets.

In case Brent oil settles below the $105.00 level, it will head towards the support level, which is located in the $101.50 – $102.00 range.

On the upside, Brent oil needs to settle above the resistance level at $108.50 – $109.00 to have a chance to gain upside momentum in the near term. In this case, Brent oil will head towards the resistance at $112.50 – $113.00.

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