Natural Gas, WTI Oil, Brent Oil Forecasts – WTI Oil Tests The $75 Level As Iran Signals Progress In Talks

Natural Gas Remains Stuck Below The $2.70 Level

Natural gas is swinging between gains and losses as traders wait for the EIA report, which will be released tomorrow. The report is expected to show that working gas in storage increased by +30 Bcf from the previous week.

In case natural gas stays below the $2.70 level, it will move towards the nearest support, which is located in the $2.50 – $2.55 range.

On the upside, the nearest resistance level for natural gas 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.

WTI Oil Is Flat As Traders Wait For Iran – Oman Deal

WTI oil is swinging between gains and losses as traders focus on geopolitical news and react to the EIA report.

Iran has recently said that it had reached a deal with Oman on the management of the Strait of Hormuz. The two countries have chosen a route which will be used by vessels going through the Strait. The deal is expected to be announced soon.

The U.S. has not commented on the deal betwen Iran and Oman. U.S. approval would be required as the country has imposed a naval blockade on Iranian ports.

The EIA report indicated that crude inventories increased by +2.5 million barrels from the previous week, compared to analyst forecast of -1.5 million. At current levels, crude inventories are 6% below the five-year average for this time of the year.

Gasoline inventories decreased by -1.6 million barrels, compared to analyst consensus of -1.3 million. Distillate fuel inventories declined by -3.5 million barrels from the previous week.

Crude oil imports increased by +515,000 bpd, averaging 6.2 million bpd. Over the past four weeks, crude oil imports averaged about 5.8 million bpd.

Strategic Petroleum Reserve declined from 307.7 million barrels to 304.8 million barrels as U.S. continued to sell oil from strategic reserves. Domestic oil production increased from 13.796 million bpd to 13.804 million bpd.

In case WTI oil settles below the $75.00 level, it will head towards the nearest support level, which is located in the $73.00 – $73.50 range. A move below the $73.00 level will push WTI oil towards the psychologically important $70.00 level.

On the upside, a successful test of the resistance at $77.50 – $78.00 will push WTI oil towards the 50 MA at $80.30. If WTI oil climbs above the 50 MA, it will move towards the resistance at $81.50 – $82.00.

Brent Oil Moved Higher Amid Profit-Taking

Brent oil gained some ground as traders took profits off the table after the strong pullback.

The nearest support level for Brent oil is located in the $77.50 – $78.00 range. If Brent oil declines below the $77.50 level, it will head towards the next support at $74.50 – $75.00. RSI is in the moderate territory, so there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

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