Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Rallies As Houthis Attack Saudi Airports

Natural Gas Retreats As Traders Focus On Rising Production

Natural gas is losing ground as traders focus on the consequences of Hurricane Isaias. The hurricane did not lead to major supply disruptions, and Gulf production has been already restarted.

If natural gas settles below the $3.15 level, it will head towards the nearest support, which is located in the $3.00 – $3.05 range. A move below the $3.00 level will open the way to the test of the 50 MA at $2.95.

On the upside, the nearest resistance level for natural gas is located in the $3.20 – $3.25 range. A successful test of the resistance will push natural gas towards the next resistance at $3.40 – $3.45.

WTI Oil Tests New Highs Amid Houthis’ Attacks On Saudi Arabia

WTI oil rallied as traders focused on the situation in Saudi Arabia. Iran-backed Houthis attacked Saudi airports over the weekend. Saudi Arabia said that the “cowardly terrorist attack”, which led to civilian deaths, was a war crime by the Houthis.

Oil traders bet that Saudi Arabia would be forced to respond, engaging in a full war against the Houthis. In turn, the Houthis could attack oil facilities in Saudi Arabia. The U.S. may choose to help Saudi Arabia in the war against the Houthis. Put simply, the risks of additional escalation in the region are rising on a daily basis.

President Trump has recently announced an energy truce between Russia and Ukraine in his Truth Social post. As it turned out, neither Russia nor Ukraine knew about the truce. Ukrainian President Zelenskyy said that Russia continued to attack the country’s energy infrastructure after the release of Trump’s post.

Russia said that it had no information about an “energy truce”. Russia and Ukraine continued strikes against each other over the weekend and on Monday, and there are no signs indicating that the sides of a conflict are ready for serious negotiations in the near term.

There are also no indications of any breakthroughs in U.S. – Iran talks. In fact, it looks that Iran boosted its support of the Houthis to push oil prices higher. Iran’s economy is under huge pressure from sanctions and the naval blockade, so the country will likely try to escalate to boost oil prices and put more pressure on the U.S. At this point, the fundamentals are bullish for oil.

Currently, WTI oil is trying to settle above the resistance level at $92.50 – $93.00. If WTI oil manages to settle above the $93.00 level, it will head towards the next resistance, which is located in the $96.50 – $97.00 range.

Brent Oil Tests The $107.00 Level

Brent oil rallied as traders focused on supply risks. The recent diesel deal between U.S. and Russia did not put any pressure on the market due to escalation in Saudi Arabia.

Brent oil moved above the $105.00 level and is trying to settle above $107.00. In case this attempt is successful, Brent oil will head towards the resistance at $109.00 – $109.50. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.

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