Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Tests New Lows As U.S. And Iran Move Closer To A Deal

Natural Gas Gains Ground On Dip-Buying

Natural gas rebounds as traders buy the dip which was triggered by yesterday’s EIA report. The report showed that working gas in storage increased by +108 Bcf from the previous week, compared to analyst consensus of +101 Bcf.

In case natural gas climbs above the resistance at $3.20 – $3.25, it will head towards recent highs near the $3.40 level. RSI is in the moderate territory, so there is plenty of room to gain additional upside momentum in the near term.

On the support side, a successful test of the $3.00 level will open the way to the test of the next support at $2.75 – $2.80.

WTI Oil Retreats As Reports Show That U.S. And Iran Are Ready To Sign An Interim Deal

WTI oil is losing ground amid reports indicating that U.S. and Iran are moving towards a deal.

According to the reports, the deal could be signed on the sidelines of the Group of Seven summit next week. The Summit will take place in Evian, in the French Alphs. Reports show that Geneva, Switzerland, which is located in the nearby, could be chosen as a place to sign the deal.

The interim deal could extend the ceasefire by two months to provide time for negotiations over Iran’s nuclear program. Iran would reopen the Strait of Hormuz, while the U.S. would lift the naval blockade of Iranian ports.

It looks that President Trump has already approved the draft of the deal, so negotiators are waiting for the opinion of Iran’s Supreme Leader Mojtaba Khamenei.

The response from Khamenei, who is hiding somewhere in Iran after his father, the previous Supreme Leader, was killed by an air strike, could take time.

It should be noted that several reports indicated that the deal could be signed as soon as this weekend. Such reports look too optimistic, but the market believes that the deal is imminent. That said, traders stay cautious as many things could go wrong until the deal is signed.

Currently, WTI oil continues its attempts to settle below the support at $85.00 – $85.50. In case WTI oil manages to settle below the $85.00 level, it will move towards the next support at $81.00 – $81.50.

On the upside, WTI oili needs to settle back above the $87.00 level to have a chance to gain upside momentum in the near term. In this case, WTI oil will head towards the resistance at $91.00 – $91.50.

Brent Oil Tests The $86.00 Level

Brent oil tests new lows as traders focus on U.S – Iran negotiations and wait for news from the Middle East.

A successful test of the support at $86.00 – $86.50 will open the way to the test of the next support at $81.00 – $81.50. A move below the $81.00 level will provide Brent oil with an opportunity to gain additional downside momentum.

Traders should be prepared for volatility on Monday as the market will react to developments that took place over the weekend. In case the deal is not signed, short-sellers may rush to cover their positions.

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