Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Tests New Highs As Trump Threatens Iran With Economic Isolation

Natural Gas Retreats After EIA Report

Natural gas pulls back as traders focus on the EIA Weekly Natural Gas Storage Report. The report indicated that working gas in storage increased by +16 Bcf from the previous week, compared to analyst forecast of +19 Bcf.

At current levels, stocks are -28 Bcf less than last year and +185 Bcf above the five-year average for this time of the year.

The technical picture remains unchanged as natural gas is stuck near the resistance level at $2.75 – $2.80. If natural gas manages to settle above the $2.80 level, it will head towards the 50 MA at $2.97. A move above the 50 MA will push natural gas towards the resistance level at $3.00 – $3.05.

On the support side, a move below the $2.75 level will open the way to the test of the $2.70 level. In case natural gas declines below $2.70, it will move towards August lows near the $2.62 level.

WTI Oil Gains Ground As Trump Threatens Iran’s Trading Partners

WTI oil tested new highs as President Trump said that any country that provides any type of lifeline to Iran would face tremendous economic consequences.

China has already noted that sanctions would not work and called for diplomacy. It remains to be seen whether U.S. is ready for another round of a trade war with China, which is the largest buyer of Iranian oil.

Iran said that U.S. threatened global economy. At this point, there are no signs indicating that Iran is ready to get back to negotiations.

Treasury Secretary Scott Bessent said that U.S. would unveil how the country would isolate Iran next Monday. Bessent added that the plan would be the greatest coordinated economic isolation in the history of the world.

Traders do not believe that any measures would bring Iran back to negotiations in the near term. Iran bets that oil prices would climb to unsustainable levels faster than its economy collapses. In turn, U.S. bets that Iran’s economy would collapse faster than the global economy falls into recession due to high oil prices.

WTI oil continues its attempts to settle above the resistance level at $86.00 – $86.50. If WTI oil manages to settle above the $86.50 level, it will head towards the next resistance level, which is located in the $91.00 – $91.50 range.

On the support side, a move below the $84.50 level will push WTI oil towards the nearest support at $81.50 – $82.00. If WTI oil pulls back below the $81.50 level, it will head towards the 50 MA at $78.50.

Brent Oil Tests New Highs

Brent oil rallied as traders bet that U.S. and Iran would not get back to negotiations in the upcoming weeks. Global oil reserves are falling at a robust pace, and fundamentals are bullish for oil markets.

if WTI oil settles above the $94.00 level, it will head towards the resistance at $95.50 – $96.00. A move above the $96.00 level will open the way to the test of the $100.00 level.

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