Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Traders Stay Cautious As Hormuz Negotiations Drag On

Natural Gas Gains Ground As Traders Buy The Dip

Natural gas rebounds as traders focus on high demand due to hot weather. Yestereday’s EIA report put significant pressure on natural gas markets, but weather forecasts managed to provide some support to prices.

In case natural gas manages to settle above the $2.70 level, it will move towards the nearest resistance, which is located in the $2.75 – $2.80 range. A successful test of this level will open the way to the test of the next resistance at $3.00 – $3.05.

On the support side, a move below the $2.62 level will push natural gas towards the support at $2.50 – $2.55.

WTI Oil Is Flat As Traders Wait For The Outcome Of Iran – Oman Talks

WTI oil is swinging between gains and losses as traders wait for geopolitical news. According to recent reports, Iran continued to discuss the details of the proposed deal with Oman. Iran and Oman discuss management of the Strait of Hormuz.

President Trump said that talks continued but did not provide additional details on the current status of negotiations.

Previously, markets expected that the deal would be announced this week. As usual, negotiations proved to be complicated, so it remains to be seen whether the deal would be approved by negotiators in the near term.

In this situation, traders are not ready for big moves ahead of the weekend. As a result, oil prices are swinging between gains and losses in choppy trading session.

From the technical point of view, WTI oil continues its attempts to settle above the resistance level at $77.50 – $78.00. In case WTI oil manages to settle above the $78.00 level, it will head towards the 50 MA at $79.90.

A move above the 50 MA will push WTI oil towards the next resistance, which is located in the $81.50 – $82.00 range. RSI is in the moderate territory, so there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

On the support side, a move below the $76.00 level will open the way to the test of the nearest support level at $73.00 – $73.50.

Brent Oil Tests The $84.00 Level

Brent oil is mostly flat as traders focus on news from the Middle East. At this point, geopolitical news serve as the only catalyst for Brent oil.

Traders have completely ignored the strong pullback of the U.S. dollar, which was triggered by the disappointing Non Farm Payrolls report. The report showed that U.S. economy lost -23,000 jobs in July. Traders expect that Fed will not raise rates in September due to weak job market, but oil markets are laser-focused on the situation in the Strait of Hormuz and do not care about Fed policy outlook.

Brent oil settled above the resistance level at $82.00 – $82.50 and is trying to climb above the 50 MA at $83.96. In case this attempt is successful, Brent oil will move towards the next resistance level at $86.50 – $87.00.

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