Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Tests New Highs As Houthis Attack Saudi Aramco Facilities

Natural Gas Moves Higher As Traders Bet On High Demand

Natural gas gains ground as traders focus on high demand, which is driven by hot weather.

Weather forecasts for the upcoming days are bullish, providing additional support to natural gas markets.

The nearest resistance level for natural gas is located in the $3.00 – $3.05 range. A successful test of this level will open the way to the test of the next resistance at $3.25 – $3.30.

On the support side, natural gas needs to settle below the 50 MA at $2.93 to have a chance to gain downside momentum. In this case, natural gas will head towards the nearest support level, which is located in the $2.75 – $2.80 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.

WTI Oil Tests Resistance At $92.50 – $93.00

WTI oil gains ground amid reports indicating that Saudi Aramco oil facility in Jizan was hit. This refinery has been previously attacked by the Houthis. It is not clear whether damage was significant, but the market interprets the attack as a sign of additional escalation in the Middle East.

Meanwhile, Iran said that it would reach a deal with Oman. The countries would manage shipping through the Strait of Hormuz.

Iran and Oman have been negotiating for several weeks. U.S. President Donald Trump has previously warned Oman to stay away from any deals that would impose fees in the Strait of Hormuz.

At this point, it is not clear how the market would respond to the potential deal between Iran and Oman. The deal could boost traffic through the Strait of Hormuz by setting clear rules for vessels. However, the U.S. has always opposed Iran’s management of the Strait, so the deal could lead to another round of escalation.

Over the weekend, Iran attacked several vessels in the Strait of Hormuz that followed an unauthorized route. These attacks provided additional support to oil prices.

I see no signs indicating that U.S. and Iran are ready to get back to serious negotiations in the near term. The risks of additional escalation are rising day by day, which is bullish for oil markets.

Currently, WTI oil is trying to settle above the resistance level at $92.50 – $93.00. In case this attempt is successful, WTI oil will head towards the next resistance level, which is located in the $97.50 – $98.00 range. A move above the $98.00 level will push WTI oil towards the psychologically important $100.00 level.

On the support side, WTI oil needs to settle back below the $92.00 level to have a chance to gain downside momentum in the near term. In this case, WTI oil will head towards the nearest support at $89.00 – $89.50.

Brent Oil Gains Ground Amid Escalation Risks

Brent oil tests new highs as traders focus on risks of additional escalation in the Middle East.

From the technical point of view, Brent oil climbed above the resistance level at $95.50 – $96.00 and is trying to settle above the $97.50 level. In case this attempt is successful, Brent oil will head towards the $100.00 level. A move above $100.00 will open the way to the test of the resistance level at $101.50 – $102.00.

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