Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Tests New Highs As Houthis Are Ready To Attack Ships

Natural Gas Gains Ground As Traders Bet On Strong Demand

Natural gas continues to rebound as traders bet on rising demand amid favorable weather.

Currently, natural gas is trying to settle above the $2.90 level. In case this attempt is successful, natural gas will move towards the nearest resistance level, which is located in the $3.00 – $3.05 range.

A move above the $3.05 level will push natural gas towards the 50 MA at $3.10. In case natural gas manages to settle above the 50 MA, it will head towards the next resistance level at $3.25 – $3.30.

WTI Oil Tests Resistance At $86.00 – $86.50

WTI oil tests new highs as traders focus on rising tensions in the Middle East. U.S. and Iran continue to attack each other. Neither U.S. nor Iran are willing to return to diplomacy in the near term.

President Trump said that U.S. will destroy one bridge or power plant for any vessel attacked by Iran in the Strait of Hormuz.

According to Iran, U.S. violated the memorandum of understanding and should implement it in case the U.S. wants to get back to negotiations.

Meanwhile, Houthis’ threats against Saudi Arabia forced shipowners to reduce risks. Marine traffic data shows that vessels have started to avoid the Bab al-Mandab Strait.

According to recent reports, Houthis have already prepared their positions near the Bab al-Mandab Strait in order to attack vessels going to Saudi Arabia. Houthis are backed by Iran. Houthis have been at war with Saudi Arabia since 2015, although a ceasefire has been implemented since 2022.

Oil traders are worried that Houthis would force vessels carrying oil from Saudi Arabia to go around Africa, which will have a major impact on the price and duration of such a journey.

WTI oil is trying to settle above the resistance level at $86.00 – $86.50. In case this attempt is successful, WTI oil will head towards the $90.00 level. A move above $90.00 will push WTI oil towards the next resistance, which is located in the $91.50 – $92.00 range.

Brent Oil Attempts To Settle Above $95.00

Brent oil rallied as traders focused on supply disruptions in the Middle East. There are no signs indicating that U.S. or Iran are ready to get back to negotiations. The risks of additional escalation are rising on a daily basis. In case U.S. attacks Iran’s power plants, Iran may attack oil-producing facilities in the region, which could trigger a massive rally in the oil markets.

A successful test of the resistance at $95.00 – $95.50 will open the way to the test of the next resistance level, which is located in the $100.00 – $100.50 range. RSI is close to the overbought territory, but there is enough room to gain additional upside momentum in the near term. A move above the $100.50 level will show that the market is in a state of panic.

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