Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Retreats As Traders Bet On U.S. – Iran Negotiations

Natural gas pulls back as traders take some profits off the table after the strong rally, which was triggered by outage on Columbia Gas Transmission pipeline. The nearest resistance level for natural gas is located in the $3.25 – $3.30 range. In case natural gas climbs above the $3.30 level, it will head towards the next resistance, which is located in the $3.55 – $3.60 range. On the support side, a move below the $3.20 level will push natural gas towards the nearest support at $3.00 – $3.05. Crude Sells Diplomacy as Diesel and Freight Keep Supply Risk Alive WTI oil is losing ground amid reports indicating that U.S. and Iran are working on a deal to reopen the Strait of Hormuz. According to reports, Iran could reopen the Strait of Hormuz while U.S. would lift the blockade of Iranian ports. It is not clear whether U.S. and Iran discussed sanctions, which put major pressure on the Iranian economy. The key problem for Iran negotiations is the involvement of Islamic Revolutionary Guard Corps, which is always choosing hawkish options. Iran’s President Pezeshkian and Foreign Minister Araghchi appear to be ready for constructive negotiations. However, the real power in the country is in the hands of IRGC, which has expanded its influence during the war. Thus, U.S. is talking to “doves”, while the ultimate decisions are made by “hawks”, making true negotiations almost impossible. Business press reports signaled that U.S. and Iran were ready for some deal for months, but there was no breakthrough. It remains to be seen whether current negotiations will end positively. Traders are also waiting for the partial restart of Saudi Arabia’s East-West pipeline. It is expected that the pipeline would be restarted on Saturday. From a big picture point of view, traders decided to take some profits off the table after the strong rally but are not ready to bet on a major pullback amid uncertainty. Currently, WTI oil is trying to settle below the $92.50 level. In case this attempt is successful, WTI oil will move towards the support level, which is located in the $88.50 – $89.00 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge. Brent oil is under pressure as traders focus on potential U.S. – Iran negotiations. As usual, Fars news agency from Iran, which is close to IRGC, denies that Iran is ready for a deal. The nearest support level for Brent oil is located in the $101.50 – $102.00 range. In case Brent oil settles below the $101.50 level, it will head towards the psychologically important $100.00 level. A move below $100.00 will open the way to the test of the support at $97.00 – $97.50.