Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Rallies As Iran Attacks U.S. Bases In Bahrain And Kuwait

Natural Gas Tests Resistance At $3.20 – $3.25

Natural gas gains ground as traders take some profits off the table after recent pullback and focus on rising tensions in the Middle East.

Currently, natural gas is trying to settle back above the resistance level at $3.20 – $3.25. In case this attempt is successful, natural gas will head towards recent highs near the $3.40 level. If natural gas climbs above $3.40, it will head towards the resistance at $3.50 – $3.55.

On the support side, a move below $3.15 will push natural gas towards the nearest support, which is located in the $3.00 – $3.05 range.

WTI Oil Tests New Highs Amid Rising Tensions In The Middle East

WTI oil rallies as traders focus on recent developments in the Middle East. U.S. and Iran attacked each other despite ceasefire.

U.S. military delivered strikes against an empty oil tanker that was moving to Iran. In turn, Iran targeted Iran’s naval base in Bahrain and airbase in Kuwait. Iran also delivered strikes against Kuwait’s civilian airport. According to recent reports, this strike caused material damage and led to suspensions of flights. Kuwait expelled two Iranian diplomats after the strike.

Meanwhile, Israel continued its operation against Hezbollah in Lebanon, while Hezbollah delivered strikes against Israel. Iran believes that Israel – Hezbollah conflict should be included in the deal with the U.S. In turn, Israel wants freedom of action to protect the country against Hezbollah’s attacks.

President Trump confirmed that he put some pressure on Israeli Prime Minister Netanyahu to stop fighting in Lebanon. At this point, neither Israel nor Hezbollah appear to be ready for a comprehensive deal that would put an end to hostilities in the region.

Traders have started to prepare for the continuation of a lengthy negotiating process which could keep the Strait of Hormuz shut for weeks or months. The risks of a restart of the full-blown war in the Middle East are rising, which is bullish for oil prices.

WTI oil attempts to settle above the resistance level at $97.00 – $97.50. If WTI oil manages to settle above the $97.50 level, it will head towards the next resistance, which is located in the $102.00 – $102.50 range.

On the support side, a move below the $94.00 level will open the way to the test of the support at $91.00 – $91.50.

Brent Oil Rallies As Geopolitical Risks Increase

Brent oil tests new highs amid rising geopolitical risks. Traders increase their long positions as chances for a deal between U.S. and Iran decline.

A successful test of the resistance at $96.00 – $96.50 will push Brent oil towards the next resistance level, which is located in the $101.00 – $101.50 range. If Brent oil climbs above the $101.50 level, it will get to the test of the 50 MA at $103.20. 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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