Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Pulls Back As U.S. May Ease Venezuela Oil Sanctions

Key Insights

• Natural gas tested new lows as traders focused on the bearish changes in weather forecasts. 
• WTI oil pulled back towards the $87.00 level as U.S. reportedly planned to ease Venezuela oil sanctions. 
• Brent oil moved below the psychologically important $90.00 level. 

Natural Gas

Natural gas remains under pressure due to warmer weather forecasts. The pullback in the European natural gas markets adds to the bearish sentiment.

In case natural gas settles below the support at $3.00 – $3.05, it will head towards the next support level, which is located in the $2.80 – $2.85 range.

WTI Oil

WTI oil pulls back as traders react to the reports claiming U.S. plans to ease oil sanctions on Venezuela. The country cannot raise oil production quickly, but traders use the news as an excuse to take some profits after the recent rally.

From the technical point of view, WTI oil needs to settle above the resistance at $86.00 – $87.30 to have a chance to gain additional upside momentum in the upcoming trading sessions.

Brent Oil

Brent oil is also losing ground amid a broad pullback in the oil markets. It remains to be seen whether Brent oil will gain downside momentum as tensions in the Middle East continue to increase.

The current pullback looks healthy after the strong rally, and Brent oil will likely need additional bearish catalysts to break the trend.

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