Natural Gas Stays Above $3.00
Natural gas settled above the support at $3.00 – $3.03 as traders remained focused on mild weather forecasts and prepared for tomorrow’s EIA report.
In case natural gas manages to settle above the $3.10 level, it will head towards the nearest resistance level at $3.25 – $3.28. A move above $3.28 will push natural gas towards the 50 MA at $3.31.
On the support side, a move below the $3.00 level will provide natural gas with an opportunity to gain additional downside momentum. In this case, natural gas will move towards recent lows near the $2.85 level and may get to the test of the $2.80 level.
WTI Oil Rallies As Crude Inventories Drop
WTI oil gains ground as traders focus on the EIA Weekly Petroleum Status Report and react to news from the Middle East.
EIA report indicated that crude inventories decreased by -1.9 million barrels, compared to analyst forecast of +0%. Gasoline inventories increased by +3.9 million barrels, while analysts expected that they would decline by -0.9 million barrels.
Strategic Petroleum Reserve declined from 282.7 million barrels to 282.6 million barrels. Domestic oil production increased from 13.269 million bpd to 13.922 million bpd and climbed towards the psychologically important 14.0 million bpd level.
There are no signs indicating that Iran is ready for concessions on its nuclear program, which was the key reason why U.S. and Israel started the military operation against the country.
In this light, the risks of a restart of strikes against Iran are rising. The oil market prepares for the potential restart of the military operation after U.S. midterm elections.
WTI oil climbed above the resistance at $100.50 – $101.00 and is trying to gain additional upside momentum. In case WTI oil manages to settle above the $104.00 level, it will head towards the next resistance at $106.00 – $106.50. RSI remains in the moderate territory, so there is plenty of room to gain additional upside momentum in the near term.
On the support side, a move below the psychologically important $100.00 level will push WTI oil towards the support at $96.50 – $97.00.
Natural Gas Price Forecast
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See all Natural Gas forecastsBrent Oil Gains Ground As Traders Focus On Middle East Tensions
Brent oil is moving higher as traders bet on potential escalation in the Middle East. The market does not believe that recent efforts from Saudi Arabia, Turkey, and Pakistan will be successful. Iran wants to keep its nuclear program as it is, which is unacceptable for the U.S. and Israel.
The current stalemate cannot last long as global economy suffers from high oil prices while Iranian economy suffers from sanctions and naval blockade. Escalation could be seen as a way out of the current situation by all sides of the conflict.
From the technical point of view, Brent oil continues its attempts to settle above the resistance at $114.50 – $115.00. In case Brent oil manages to settle above the $115.00 level, it will head towards the next resistance at $119.50 – $120.00.
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