Natural Gas, WTI Oil, Brent Oil Forecasts – WTI Oil Rallied Above The $100 Level

Natural Gas Pulls Back At The Start Of The Week

Natural gas pulls back as traders focus on bearish weather forecasts. Current demand for natural gas remains low, and it remains to be seen whether it would increase in the near term.

It should be noted that traders shifted their focus from the conflict in the Middle East to domestic demand. At this point, rising tensions in the Middle East do not provide additional support to natural gas prices.

The nearest support level for natural gas is located in the $2.75 – $2.80 range. If natural gas pulls back below the $2.75 level, it will gain additional downside momentum and move towards the next support at $2.50 – $2.55.

WTI Oil Tests Resistance At $102.50 – $103.00

WTI oil gains ground as traders react to Trump’s comments on Iran. President Trump said that U.S. will destroy Iranian power plants and attack Kharg Island in case Iran did not agree to a deal.

He also noted that U.S. was talking to a “new” regime. Iran denies having direct talks with the U.S. Meanwhile, Iranian parliament has recently passed a bill that allows to impose tolls on vessels that pass through the Strait of Hormuz.

From a big picture point of view, traders continue to prepare for a ground operation in Iran. Such an operation would mark a huge escalation of the conflict and may push oil prices towards new highs.

From the technical point of view, WTI oil climbed above the psychologically important $100 level and is trying to settle above the resistance at $102.00 – $102.50. In case this attempt is successful, WTI oil will move towards the next resistance level, which is located near March highs at $118.50 – $119.00. It should be noted that no resistance levels were formed between $102.50 and $118.50.

On the support side, a move below the $100 level will push WTI oil towards the nearest support at $97.00 – $97.50.

Brent Oil Moved Away From Session Highs Amid Profit-Taking

Brent oil is swinging between gains and losses as traders focus on developments in the Middle East and take some profits off the table near multi-year highs.

Interestingly, the spread between WTI oil and Brent oil has started to shrink. However, it’s too early to say whether it’s a start of a new trend. The market is extremely nervous amid worries about a potential ground operation in Iran, so traders should not put too much weight on short-term price dynamics.

In case Brent oil climbs back above the $114 level, it will move towards the nearest support, which is located in the $118.50 – $119.00 range. This support level has already been tested several times and proved its strength.

A move above the $119.00 level will provide Brent oil with an opportunity to gain strong upside momentum. RSI has recently moved back into oversold territory, but there is plenty of room to gain momentum in case the right catalysts emerge.

On the support side, the nearest support level for Brent oil is located in the $108.50 – $109.00 range. If Brent oil pulls back below the $108.50 level, it will head towards the next support at $103.00 – $103.50.

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