Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Tests New Lows As U.S. – Iran Talks Show Signs Of Progress

Natural Gas Remains Under Pressure

Natural gas is losing ground as traders focus on weather forecasts. Demand for natural gas is expected to decline, which is bearish for natural gas markets.

Currently, natural gas is trying to settle below the 50 MA at $2.94. In case this attempt is successful, natural gas will head towards the nearest support level, which is located in the $2.75 – $2.80 range. A move below the $2.75 level will open the way to the test of the $2.60 level.

On the upside, natural gas needs to settle above the resistance at $3.00 – $3.05 to have a chance to gain upside momentum in the near term. In this case, natural gas will move towards the resistance at $3.20 – $3.25.

WTI Oil Tests Support At $97.00 – $97.50

WTI oil is moving lower as traders stay focused on U.S. – Iran negotiations. Pakistan said that its army chief will visit Tehran to discuss the potential peace deal.

Pakistan continues to serve as the key mediator between U.S. and Iran. The visit of Pakistan’s army chief is viewed as a bearish signal for oil markets as it highlights potential progress in peace negotiations.

Earlier, U.S. Secretary of State Marco Rubio said that there was “slight progress” in negotations with Iran.

The fate of Iran’s nuclear program, as well as the status of the Strait of Hormuz, are the key questions in negoations. U.S. wants to limit Iran’s nuclear program so that the country has no opportunity to build a nuclear weapon. In turn, Iran believes it has the right for uranium enrichment and does not want to end its nuclear program.

In addition, Iran wants to create a toll system in the Strait of Hormuz. This would be a dangerous precedent as the Strait of Hormuz is recognized as international waters. Not surprisingly, the U.S. and Gulf countries oppose Iran’s idea.

From the technical point of view, WTI oil continues its attempts to settle below the support level at $97.00 – $97.50. In case WTI oil manages to stay below the $97.00 level, it will move towards the next support, which is located in the $91.00 – $91.50 range.

Brent Oil Pulls Back As Traders Focus On U.S. – Iran Talks

Brent oil is moving lower as traders wait for the results of U.S. – Iran talks. According to recent reports, UAE, Saudi Arabia and Qatar urged President Trump not to restart the war against Iran.

Earlier, Iran promised to strike beyond the Middle East in case the country is attacked again.

Traders bet that there are many incentives to reach a deal. Iran is suffering from the naval blockade imposed by the U.S. In the U.S., Michican Consumer Confidence dropped to decade lows as consumers focused on rising fuel prices.

That said, traders remain cautious as U.S. and Iran have been negotiating for weeks and reached no results.

In case Brent oil manages to settle below the support at $103.00 – $103.50, it will move towards the next support level at $96.00 – $96.50. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

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