Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Rallies As Houthis Attack Saudi-Backed Forces In Yemen

Natural Gas Tests New Lows As Storage Build Exceeds Estimates

Natural gas is losing ground as traders focus on the EIA Weekly Natural Gas Storage Report. The report indicated that working gas in storage increased by +33 Bcf from the previous week, compared to analyst consensus of +31 Bcf. Higher-than-expected build put additional pressure on natural gas markets.

At current levels, stocks are -12 Bcf less than last year and +195 Bcf above the five-year average for this time of the year. High storage levels serve as a bearish catalyst for natural gas markets.

Currently, natural gas is trying to settle below the $2.65 level. In case this attempt is successful, natural gas will move towards the nearest support, which is located in the $2.50 – $2.55 range. RSI is close to the oversold territory, but there is enough room to gain additional downside momentum in case the right catalysts emerge.

On the upside, natural gas needs to settle above the resistance level at $2.75 – $2.80 to gain sustainable upside momentum in the near term. In this case, natural gas will head towards the resistance at $3.00 – $3.05.

WTI Oil Rallies Amid Escalation In The Middle East

WTI oil rebounds as Houthis said they attacked Saudi-backed forces in Yemen. Houthis claim that Saudi Arabia prepares to attack them. It should be noted that Houthis and Saudi Arabia reached a ceasefire back in 2022, but it is no longer valid. Houthis are trying to attack Saudi Arabia’s vessels as they have imposed a maritime blockade on the country’s ports.

Recent reports suggest that Saudi Arabia prefers diplomacy but prepares for military action in case negotiations fail.

Meanwhile, Iran said that the country had reached understanding with Oman regarding management of the Strait of Hormuz. According to Iran, the potential agreement would be valid for 2 – 4 months. Iran noted that U.S. was not part of the agreement.

Currently, WTI oil is trying to settle above the resistance level at $77.50 – $78.00. In case this attempt is successful, WTI oil will head towards the 50 MA at $80.07. A move above the 50 MA will push WTI oil towards the next resistance level at $81.50 – $82.00.

On the support side, a move below the $75.00 level will open the way to the test of the nearest support at $73.00 – $73.50.

Brent Oil Tests Resistance At $82.00 – $82.50

Brent oil rallied as traders focused on escalation in the Middle East. A potential war between Houthis and Saudi Arabia could lead to supply disruptions. Traders also wait for the official announcement of the agreement between Iran and Oman. U.S. continues its naval blockade of Iranian ports, so the implementation of any agreement in the Strait of Hormuz is not possible without U.S.

Brent oil is trying to setlte above the resistance level at $82.00 – $82.50. If Brent oil manages to settle above the $82.50 level, it will move towards the 50 MA at $84.10. In case Brent oil climbs above the 50 MA, it will head towards the next resistance level at $86.50 – $87.00.

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