Natural Gas and Oil Forecast: Warship Risks Spike Prices – Is a $90 Oil Moonshot Next?

Market Overview

WTI crude futures have shot up over 3% to almost $78 a barrel , their highest price level since late January, thanks to tensions that are escalating in a super important oil-producing region sending supply worries into overdrive.

To make matters worse an Asian major has slapped export restrictions on refined fuels, which has further reduced global supplies. And if things get any worse there are worries that warships can’t get through a vital sea route, which would really hurt fuel shipments.

Some people have been talking about plans to calm things down on the seas, but market players are still being super cautious, factoring in the possibility that oil might get harder to come by at any time.

There was some info from the US Energy Information Administration that showed crude inventories went up by 3.5 million barrels to 439.3 million, which is a bit of a relief. But overall all the uncertainty around the world is still giving oil and natural gas traders reason to be optimistic.

Natural Gas Price Forecast: $2.91 Support Holds as $3.10 Comes Into Focus

Natural Gas (NG) is currently trading near $2.99 and is holding its own above the critical $2.91 support zone. Now that’s a pretty important level because it aligns with not only the 200-day moving average but also a rising trend line on the 2-hour chart. Price recently bounced back from that trend line at $2.77 and formed a higher low, which is a good sign that the short-term trend is still heading upwards.

The RSI is recovering towards 55-60, which supports the idea that things will keep going up. Looking at the upper end of the chart, the next resistance levels are $3.00, $3.10, and $3.19. But if the price can just break above $3.00 then that would confirm that the trend is still going upwards and we could see some more upside action.

WTI Crude Oil Price Forecast: Break Above $76.63 Targets $80.72

WTI crude is currently hovering around $76.63 following a decisive daily break above the resistance at $74.09 – $75.00, it looks like price has made a clear decision to keep going up and is now firmly contained within a clear upwards channel. The 50-day moving average has been reclaimed by price and is now sitting safely above the 200-day average – that’s a pretty clear sign that the trend has swung from bearish to bullish.

A strong bullish candlestick just appeared which shows some very aggressive buying interest and as for the RSI, well it’s sitting near 80 which indicates that there’s some pretty strong momentum on the upside, although its getting a bit overbought which might just force a bit of a short term pullback.

Down at the lower end of the chart, key support can be found at $74.09, and if things get really bad, then $72.50 is waiting in the wings down at the channel base. But for now, if price keeps going strong, it’s got its eyes set on $77.12 and then $80.72 in the distance.

Brent Crude Oil Forecast: Rally Above $83.18 Opens Path to $88.34

Brent crude is trading around $83.18 and is still looking pretty strong as it moves through its upwards channel on the daily chart. A break above the $78.54-$80.00 resistance zone has confirmed that things are headed higher, and it looks like the bulls are firmly in control.

There have been some pretty sustained buying interest signs on the daily chart, following a big impulsive move, and the RSI is pushing up towards 80, which is a good sign that the momentum is with the bulls – although, you know, it could all come crashing down if things get a bit too overbought and a pullback can’t be ruled out.

Down at the lower end of the chart, the lower support level is around $80.00 and then up top we have $85.01 and $88.34 as the upside targets – but you never know, things can change quickly in the markets.