Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Rallies 3% As Iran Targets Kuwait’s Water And Power Plants

Natural Gas Rebounded Above The $2.90 Level

Natural gas  gains ground as traders focus on weather forecasts, which indicate that demand will be high in the upcoming days.

From the technical point of view, natural gas continues its attempts to settle above the $2.90 level. In case natural gas manages to settle above $2.90, it will head towards the nearest resistance at $3.00 – $3.05. A move above the $3.05 level will push natural gas towards the 50 MA at $3.09.

On the support side, a move below the $2.85 level will open the way to the test of the nearest support level, which is located in the $2.75 – $2.80 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.

WTI Oil Tests New Highs Amid Fighting In The Middle East

WTI oil rallied as traders focused on recent developments in the Middle East. U.S. and Iran traded strikes in the Middle East. The targets included non-military assets like Iran’s bridges and Kuwait’s water desalination plants. Put simply, the range of U.S. and Iran strikes is widening, so traders fear that a return to an all-out war may be around the corner.

Earlier, President Trump threatened to intensify strikes against Iran in case the country maintained its position on the Strait of Hormuz and continued to attack vessels which were going through alternative routes.

From a big picture point of view, traders are worried that U.S. will target Iran’s critical infrastructure and Iran would respond by attacking oil and gas assets in the region.

Recent reports suggest that traffic in the Strait of Hormuz has significantly declined. However, some oil may still be going through the world’s key oil route.

WTI oil climbed above the resistance level at $80.00 – $80.50 and is trying to settle above the $82.00 level. In case this attempt is successful, WTI oil will head  towards the 50 MA at $84.42. A move above the 50 MA will push WTI oil towards the resistance level at $86.00 – $86.50.

On the support side, WTI oil needs to settle back below the $80.00 level to have a chance to gain downside momentum in the near term. In this case, WTI oil will move towards the support level at $74.50 – $75.00.

Brent Oil Tests The $88.00 Level

Brent oil tests new highs as traders react to escalation in the Middle East. Traders worry that strikes will intensify over the weekend and rush to buy oil futures.

Brent oil managed to settle above the resistance level at $86.00 – $86.50 and is trying to settle above the 50 MA at $88.40. If Brent oil settles above the 50 MA, it will move towards the next resistance level at $90.50 – $91.00. RSI remains in the moderate territory, so there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

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