Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Traders Prepare For U.S. – Iran Talks

Natural Gas Pulls Back Amid Lack Of Positive Catalysts

Natural gas remains under pressure as traders stay focused on the recent EIA report, which showed that working gas in storage increased by +50 Bcf from the previous week.

Weather forecasts point to low demand for natural gas, serving as an additional bearish catalyst for natural gas prices.

Currently, natural gas is trying to settle below the $2.65 level. In case this attempt is successful, natural gas will move towards the nearest support level, which is located in the $2.50 – $2.55 range. RSI remains in the moderate territory, so there is plenty of room to gain momentum in the near term.

WTI Oil Retreats From Session Highs

WTI oil continues its attempts to settle back above the resistance level at $97.00 – $97.50 as traders prepare for negotiations between U.S and Iran, which will be held in Islamabad.

Iran has recently demanded that Lebanon should be included in the ceasefire deal In addition, Iran wants to unblock its frozen assets before peace talks could proceed.

Vice President JD Vance warned Iran not to “play”, while President Donald Trump posted that the Strait of Hormuz was Iran’s only card.

It should be noted that the Strait of Hormuz remains mostly blocked as Israel continues its operation against Hezbollah in Lebanon. Israel and Lebanon are expected to hold talks next week. Iran said that it would not reopen the Strait of Hormuz if Israel continues to fight in Lebanon.

Traders are optimistic ahead of negotiations between U.S. and Iran and believe that a peace deal could be reached. However, traders are not ready to increase their short bets as many things could go wrong over the weekend.

It should be noted that futures prices do not reflect the realities of the physical market. Recent reports indicated that some refineries were forced to buy oil at almost $150 per barrel amid shortage.

If WTI oil manages to settle above the resistance at $97.00 – $97.50, it will head towards the next resistance level, which is located in the $102.00 – $102.50 range. A move above the $102.50 level will indicate that the market is ready to gain sustainable upside momentum.

On the support side, a move below the $95.00 level will push WTI oil towards the support at $91.00 – $91.50.

Brent Oil Failed To Settle Above $97.50

Brent oil is stuck near the resistance at $97.00 – $97.50 as traders are not ready for big moves ahead of U.S. – Iran talks.

The market will be extremely sensitive to geopolitical news as the outcome of negotiations will determine whether the Strait of Hormuz would be reopened or fighting resumes. Traders should expect that volatility will increase when markets reopen next week.

In case Brent oil fails to settle above the resistance at $97.00 – $97.50, it will move towards the support level, which is located near recent lows at $91.00 – $91.50. A move below the $91.00 level will push Brent oil towards the 50 MA at $86.88.

On the upside, Brent oil needs to settle back above the $97.50 level to have a chance to gain upside momentum in the near term. In this case, Brent oil will head towards the resistance at $103.00 – $103.50.

If you’d like to know more about how commodity markets work, please visit our educational area.