Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Rallies As Iran Strikes A Petroleum Complex In Fujairah

Natural Gas Tests New Highs

Natural gas gains ground as traders focus on escalation in the Middle East and bet that domestic demand may increase soon.

From the technical point of view, natural gas moved above the resistance at $2.75 – $2.80 and is trying to settle above the $2.85 level. In case this attempt is successful, natural gas will head towards the next resistance level, which is located in the $3.00 – $3.05 range.

On the support side, a move below the $2.75 level will push natural gas towards recent lows near the $2.60 level. If natural gas pulls back below $2.60, it will get to the test of the support at $2.50 – $2.55.

WTI Oil Moves Higher As Traders React To Iran’s Attack Against UAE

WTI oil gains ground as traders focus on the situation in the Middle East. Iran has suddently attacked UAE and hit an oil facility in Fujairah. At the time of writing, UAE did not retaliate against Iran, although the country said that it reserved the right to respond to attacks.

Today, President Trump launched “Project Freedom” which aims to use military vessels to get tankers out of the Strait of Hormuz. Iran considers this move as a violation of the ceasefire. Iran claimed that it attacked a U.S. vessel. The U.S. denied this claim and warned Iran against such attacks.

It looks that Iran’s attacks against UAE are a response to “Project Freedom”. Recent action indicates that U.S. – Iran negotiations have stalled, and both sides are ready for the new round of the Middle East war.

Not surprisingly, traders rushed to buy oil. The situation in the physical market gets worse day by day, so another round of escalation in the Middle East will present a huge problem.

WTI oil settled back above the support at $102.00 – $102.50 and is moving towards the resistance level at $108.50 – $109.00. If WTI oil climbs above the $109.00 level, it will move towards the $115.00 level. RSI remains in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

Brent Oil Soars Amid Rising Tensions In The Middle East

Brent oil rallied as traders focused on Iran’s attack against UAE. Traders bet that U.S. and Israel may soon resume attacks against Iran, which would be bullish for oil markets.

The ceasefire held since early April, but now it is at great risk. In case U.S. delivers strikes against Iran or Iran attacks U.S. vessels, oil prices will gain additional upside momentum.

Currently, Brent oil is trying to settle above the resistance level at $111.50 – $112.00. If Brent oil stays above the $112.00 level, it will move towards the next resistance, which is located in the $118.50 – $119.00 range.

A move above the $119.00 level will signal that the situation in the Middle East is out of control. In this case, Brent oil may gain strong upside momentum and move towards 2022 highs near the $133.00 level.

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