Natural Gas Moves Lower On Disappointing Weather Forecasts
November natural gas futures pulled back as traders focused on milder weather forecasts and bet on lower demand.
The nearest support level for natural gas is located in the $3.00 – $3.05 range. If natural gas manages to settle below the $3.00 level, it will head towards the 50 MA at $2.91. A move below the 50 MA will open the way to the test of the support level at $2.75 – $2.80.
On the upside, WTI oil needs to settle above the resistance at $3.20 – $3.25 to have a chance to gain upside momentum in the near term. In this case, natural gas will head towards the $3.45 level.
WTI Oil Retreats As Traders React To Latest Reports On U.S. – Iran Talks
WTI oil pulled back from session highs amid reports indicating that U.S. was ready to ease Iran sanctions for nuclear progress. It remains to be seen whether these reports are correct.
Iran reiterated its demands after President Trump rejected the country’s proposal. According to Iran’s Foreign Minister Araghchi, Iran was ready to open the Strait of Hormuz in case “certain things are done by the U.S.”.
I’d note that a Wall Street Journal report indicated that President Trump was ready to resume the bombing campaign against Iran after the U.S. midterm elections on November 3. It’s hard to predict geopolitical moves but markets will certainly pay attention to such a scenario.
Saudi Arabia has managed to restart the key East-West pipeline, which helps bypass the Strait of Hormuz. However, Houthis countied to attack Saudi Arabia over the weekend. The official government of Yemen approved general mobilization to fight against the Houthis, indicating that militants made major progress in recent weeks. Houthis’ military success is bullish for oil markets as it boosts supply risks.
In case WTI oil settles below the $92.00 level, it will head towards the support at $88.50 – $89.00. On the upside, WTI oil needs to settle above the resistance at $92.50 – $93.00 to have a chance to gain upside momentum in the near term. In this case, WTI oil will head towards the next resistance, which is located in the $97.00 – $97.50 range.
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See all Natural Gas forecastsBrent Oil Pulls Back From Session Highs In Volatile Trading
Brent oil has also moved away from session highs as traders focused on the restart of the East-West pipeline and focused on rumors about U.S. – Iran negotiations.
The fundamental picture remains bullish as the Strait of Hormuz is closed while global oil reserves decline week after week.
The nearest resistance level for Brent oil is located in the $109.00 – $109.50 range. If Brent oil manages to settle above the $109.50 level, it will head towards the $113.00 level. RSI is in the moderate territory, and there is plenty of room to gain upside momentum in case the right catalysts emerge.
On the support side, a successful test of the support level at $101.50 – $102.00 will push Brent oil towards the next support at $97.00 – $97.50.
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