Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Retreats From Session Highs As Trump Says Iran Wants A Deal

Natural Gas Tests New Lows

Natural gas remains under pressure as traders shrug off geopolitical risks and focus on mild weather. Current demand for natural gas remains low, which is bearish for natural gas markets.

In case natural gas pulls back below the $2.60 level, it will move towards the nearest support, which is located in the $2.50 – $2.55 range. A successful test of this level will open the way to the test of the next support at $2.20 – $2.25. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

On the upside, natural gas needs to settle back above the resistance at $2.75 – $2.80 to have a chance to gain sustainable upside momentum in the near term.

WTI Oil Retreats From Session Highs

WTI oil pulled back from session highs as traders focused on recent comments from President Trump.

U.S. – Iran negotiations did not lead to a deal, so U.S. decided to impose a naval blockade on Iran. Trump said that other countries would join the blockade, although European leaders denied they would join the U.S. President added that he could reveal more details on countries helping with Hormuz tomorrow.

According to Trump, Iran wants a deal. The key sticking point is Iran’s uranium enrichment. Axios reported that U.S. proposed to freeze uranium enrichment for 20 years. Iran did not agree to this proposal.

Interestingly, the ceasefire holds despite problems in negotiations. Some traders see it as a sign that U.S. and Iran will be able to reach a deal soon.

From a big picture point of view, the market remains cautious. There is a big difference between the physical market, which suffers from deficit, and the futures market. If negotiations do not lead to a breakthrough in the near term, futures prices may gain solid upside momentum.

WTI oil failed to settle above the resistance at $102.00 – $102.50 and pulled back below the $100.00 level. In case WTI oil declines below the $97.00 level, it will move towards the nearest support, which is located in the $91.00 – $92.00 range.

Brent Oil Pulled Back Below The $100 Level

Brent oil has also moved away from session highs as traders took some profits off the table after Trump’s comments.

It should be noted that traders will also focus on upcoming negotiations between Israel and Lebanon. Iran insisted that Israel should stop its operation in Lebanon against Hezbollah. Interestingly, Hezbollah has recently announced that it would not follow any deal that could be made between Lebanon and Israel.

From the technical point of view, Brent oil faced strong resistance in the $103.00 – $103.50 range and pulled back below the $100.00 level. In case Brent oil fails to stay above the $97.00 level, it will move towards the support, which is located near recent lows at $91.00 – $91.50. Traders should note that the market will remain extremely sensitive to geopolitical news. If U.S. and Iran agree to a deal, technical factors will take a back seat as traders would rush to sell oil.

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