Natural Gas Rallies As Traders Bet On Rising Demand
Natural gas rallies as traders react to colder weather forecasts, which indicate that demand may start growing.
Natural gas moved above the $3.10 level and climbed towards the resistance at $3.20 – $3.23. A move above $3.23 will push natural gas towards the 50 MA at $3.27. In case natural gas manages to settle above the 50 MA, it will head towards the resistance level at $3.40 – $3.43.
On the support side, a move below the $3.10 level will push natural gas towards the nearest support, which is located in the $3.00 – $3.03 range.
WTI Oil Tests Support At $87.50 – $88.00
WTI oil is under pressure amid signs of progress in U.S. – Iran negotiations. President Trump said that it was “highly unlikely” that he would order massive strikes against Iran. Trump’s rhetoric became less hawkish after Republicans lost midterm elections.
The situation in the region remains tense. Iran-backed Houthis continue to attack Saudi Arabia. Over the weekend, the militant group attacked officies of Saudi Aramco.
Traders also focus on the upcoming talks between Russia and Ukraine in Abu Dhabi. The talks are set to start on Tuesday. Nobody believes that Russia and Ukraine will be able to reach a deal in the near term, but talks are seen as a sign of potential de-escalation. Russia will send a higher-level delegation compared to previous rounds of talks with Ukraine, indicating that the country could be serious about reaching a deal.
Currently, WTI oil is trying to settle below the support level at $87.50 – $88.00. In case this attempt is successful, WTI oil will move towards the next support, which is located in the $83.00 – $83.50 range. RSI is in the moderate territory, so there is plenty of room to gain additional downside momentum in the near term.
On the upside, a move above the $90.00 level will push WTI oil towards the resistance level at $91.50 – $92.00. In case WTI oil climbs above $92.00, it will head towards the 50 MA at $95.55.
Natural Gas Price Forecast
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See all Natural Gas forecastsBrent Oil Is Under Pressure As Traders Bet On Iran Deal
Brent oil is losing ground as traders focus on talks between U.S. and Iran and react to Trump’s dovish comments. Traders bet that U.S. and Iran are ready for serious negotiations. At this point, Houthis’ attacks on Saudi Arabia, Iran’s attacks on tankers and U.S. attacks on Qeshm Island do not provide support to oil prices.
Brent oil pulled back below the support level at $95.50 – $96.00 and is trying to settle below the $94.00 level. In case this attempt is successful, Brent oil will move towards the next support at $91.00 – $91.50.
On the upside, Brent oil needs to settle back above the $96.00 level to have a chance to gain upside momentum in the near term. In this case, Brent oil will move towards the resistance level at $99.50 – $100.00.
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