Natural Gas and Oil Forecast: WTI, Brent Pull Back as Iran Sanctions Intensify

Currently trading at $91.05, Brent crude oil was rejected at the resistance level of $94.78 and is currently testing the rising support level of $90.60 to $91.00. Additionally, Brent crude oil is trading above both the 50 EMA at $90.73 and the 100 EMA at $88.92, so the upward trend does hold. The overall recovery will be invalid if the support levels turn to resistance.

Brent crude oil is trading in a sideways pattern, forming a support level at $90.60 to $91.00. Immediate support is located at $90.73 and $88.92, while resistance is at the level of $94.78 and $97.84.

RSI has dipped to 44, indicating bullish momentum has considerably weakened. Current resistance sits at $94.78, $98.65, and $102.02. On the other hand, $90.60, $86.76, $83.30, $80.62, would act as support.

In this view, Brent is cautiously bullish above the rising trendline, the support at $90.60, and the break of which would shift the short-term bias to bullish and potentially target $86.76.