Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Rallies As Iran Attacks Vessels In The Strait Of Hormuz

Natural Gas Gains Ground As Traders Focus On Hot Weather

Natural gas is moving higher as traders focus on weather forecasts, which indicate that demand will remain high this week.

In case natural gas stays above the $3.25 level, it will head towards the nearest resistance level, which is located in the $3.40 – $3.45 range. A move above the $3.45 level will push natural gas towards the $3.60 level.

On the support side, a successful test of the support at $3.20 – $3.25 will open the way to the test of the next support level at $3.00 – $3.05.

It should be noted that natural gas stays range-bound, and the market will likely need significant catalysts to gain momentum.

WTI Oil Rallies Amid Rising Risks In The Strait Of Hormuz

WTI oil rallied as traders reacted to attacks in the Strait of Hormuz. According to recent reports, a Qatari LNG ship was hit. A Saudi Arabia tanker has also suffered damage after an attack. There’s also a report about a third attack in the Strait of Hormuz.

Reports noted that both Saudi and Qatari vessels were moving without their transponders on, which indicates that they did not want to get noticed by Iran.

Iran insists that vessels should follow the Iran-approved route. Saudi Arabia has officially blamed Iran and said that the country bears full responsibility for its actions and their consequences.

Meanwhile, Iran told the shipping agency of the UN that it had authority over parts of the Strait of Hormuz. According to Iran, parts of the Strait of Hormuz fall within the territorial waters of Iran.

It remains to be seen whether Iran’s actions will halt negotiations with the U.S. Previous attacks did not hurt negotiations, which continued at a robust pace. However, the oil market starts to realize that it would be hard to reach a comprehensive peace deal in the near term.

Currently, WTI oil is trying to settle above the resistance at $70.50 – $71.00. In case this attempt is successful, WTI oil will head towards the next resistance level, which is located in the $74.50 – $75.00 range. RSI has recently moved away from the oversold territory, so there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

Brent Oil Tests The $74.00 Level

Brent oil rallied as traders focused on rising risks in the Strait of Hormuz. Geopolitical premium has increased, providing support to oil prices. In case attacks continue, Brent oil will gain additional upside momentum.

From the technical point of view, Brent oil climbed above the resistance at $72.00 – $72.50 and moved towards the $74.00 level. If Brent oil manages to settle above the $74.00 level, it will head towards the resistance at $77.00 – $77.50.

On the support side, a move below the $70.00 level will push Brent oil towards the nearest support at $67.00 – $67.50.

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