Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Traders Are Cautious As Iran Fires Missiles Towards UAE

Natural Gas Attempts To Settle Back Above $2.75

Natural gas gains ground despite strong production as traders focus on high demand, which is boosted by hot weather.

Currently, natural gas is trying to settle back above the resistance at $2.75 – $2.80. In case natural gas manages to settle above the $2.80 level, it will head towards the next resistance level, which is located in the $3.00 – $3.05 range.

On the support side, a move below $2.75 will push natural gas towards the $2.70 level. If natural gas settles below $2.70, it will head towards August lows near the $2.62 level.

WTI Oil Moves Away From Session Highs Amid Profit-Taking

WTI oil is swinging between gains and losses as traders focus on the situation in the Middle East.

President Trump said that U.S. did not negotiate with Iran. He added that there were no talks scheduled.

UAE said that Iran fired two ballistic missiles towards the country. According to UAE, both missiles fell into the sea. Iran did not comment on this issue.

It is not clear whether Iran and Oman have completed negotiations about management of the Strait of Hormuz and are ready to present them to the world. Earlier, Trump warned Oman not to play on Iran’s side.

Traders have to deal with conflicting messages, so it’s not surprising to see that the market takes a break. Traders wonder whether negotiations will continue and whether some vessels can get through the Strait of Hormuz despite Iran’s efforts to block the world’s key waterway.

The nearest resistance level for WTI oil is located in the $86.00 – $86.50 range. In case WTI oil manages to settle above the $86.50 level, it will head towards the next resistance level at $91.10 – $91.50. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.

On the support side, a move below the $84.00 level will push WTI oil towards the nearest support at $81.50 – $82.00. If WTI oil declines below the $81.50 level, it will move towards the 50 MA at $78.61.

Brent Oil Remains Stuck Near Resistance At $91.00 – $91.50

Brent oil continues its attempts to settle above the resistance level at $91.00 – $91.50 as traders stay focused on supply disruptions. That said, some traders were ready to take profits off the table after the strong rebound from August lows.

Brent oil needs to settle above the $91.50 level to have a chance to gain upside momentum in the near term. In this case, Brent oil will head towards the next resistance level, which is located in the $95.50 – $96.00 range. A move above the $96.00 level will open the way to the test of the psychologically important $100.00 level.

On the support side, a move below the $90.00 level will push Brent oil back towards the support level at $86.50 – $87.00. If Brent oil pulls back below the $86.50 level, it will head towards the 50 MA at $83.13.

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