Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Traders Face Record Volatility

Natural Gas Pulls Back As Traders React To Dynamics Of European Markets

Natural gas moved lower as traders reacted to the pullback in the European natural gas market. Oil prices declined from recent highs, which served as an additional bearish catalyst for natural gas.

The technical picture remains unchanged as natural gas needs to settle below the support at $3.00 – $3.05 to gain additional downside momentum in the near term.

If natural gas pulls back below the $3.00 level, it will move towards the support level at $2.75 – $2.80. On the upside, a move above the $3.10 level will push natural gas towards the nearest resistance level, which is located in the $3.25 – $3.30 range.

WTI Oil Reacts To Leavitt’s Comments

WTI oil traders were up for a rollercoaster ride as the market reacted to the news from the Middle East.

WTI oil tested the $80.00 level after Energy Secretary Chris Wright said in a post that U.S. had successfully escorted an oil tanker through the Strait of Hormuz. Later, the post has been taken down.

White House Press Secretary Karoline Leavitt said that U.S. Navy did not escort any tanker. Oil prices rebounded from session lows as traders reacted to her comments.

She added that White House believed that increases in oil and gas prices were temporary. She also noted that the initial timeline for the operation against Iran was 4-6 weeks, but it’s up to Trump to determine when the operation would be concluded.

CBS has recently reported that Iran has started to put mines in the Strait of Hormuz. Iranian officials noted that the Strait of Hormuz was closed for any vessels linked to U.S. and Israel. Iran did not comment on mines in the world’s key oil route.

Put simply, traders are confused by conflicting messages. The war rages on, and the Strait of Hormuz is de-facto closed. Some traders are ready to bet that Trump would end the operation soon due to high oil prices. Meanwhile, others believe that the war in the Middle East will last for weeks, and oil producers in the region would run out of storage and would be forced to shut production.

As a result, oil prices jump back and forth. Traders must stomach record volatility, and leveraged bets are wiped out on a regular basis.

Currently, WTI oil is trying to settle above the resistance at $84.00 – $84.50. In case this attempt is successful, WTI oil will move towards the next resistance, which is located in the $90.00 – $90.50 range. On the support side, a move below $84.00 will push WTI oil towards the support at $79.00 – $79.50.

Brent Oil Tested Support At $81.50 – $82.00

Brent oil settled near the $88.00 level in a wild trading session. Traders will remain focused on the news from the Middle East. The market will be extremely sensitive to any rumors.

In case Brent oil pulls back below the support at $86.50 – $87.00, it will head towards the next support level, which is located in the $81.50 – $82.00 range.

RSI remains in the overbought territory, so the risks of a pullback remain significant. However, technical factors may take a back seat as traders are focused on geopolitical developments.

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