Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Tests New Highs As U.S. – Iran Strikes Continue

Natural Gas Gains Ground As Traders Focus On High Demand

Natural gas attempts to rebound as weather forecasts indicate that demand should remain high in the upcoming days.

A move above the $2.90 level will push natural gas towards the nearest resistance, which is located in the $3.00 – $3.05 range. If natural gas climbs above $3.05, it will head towards the 50 MA at $3.09.

On the support side, a successful test of the support at $2.75 – $2.80 will open the way to the test of the next support level at $2.50 – $2.55.

WTI Oil Moves Higher Amid Rising Tensions In The Middle East

WTI oil gains ground as fighting between U.S. and Iran continues. At this point, mediators from Qatar and Pakistan failed to bring U.S. and Iran back to negotiations.

Yesterday, Yemen’s Houthis, which are backed by Iran, announced that they would impose a maritime blockade on Saudi Arabia. This announcement provided additional support to oil prices.

Recent reports indicated that Houthis have sent messages to shipowners and warned them about dangers of sending their ships to Saudi ports. Saudi Arabia said that it would take all necessary measures to ensure the safety of vessels.

Reports suggested that mediators proposed a 10-day ceasefire in an attempt to get back to the previous memorandum of understanding between U.S. and Iran. However, it looks that neither U.S. nor Iran are ready to stop fighting.

Interestingly, Israel has not joined U.S., and Iran did not target Israel during this round of fighting. According to comments from Israel’s Finance Minister Smortrich, the country did not plan to get into U.S. – Iran fight in the near term.

Control over the Strait of Hormuz is the key reason why U.S. – Iran war has restarted. Iran’s nuclear program is not being actively discussed, and both Iran and U.S. are focused on the fate of the world’s key oil supply route.

If WTI oil manages to settle above the 50 MA at $83.77, it will move towards the nearest resistance level at $86.00 – $86.50. A successful test of the resistance at $86.00 – $86.50 will open the way to the test of the next resistance at $91.50 – $92.00. RSI remains in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

On the support side, a move below the $83.00 level will push WTI oil towards the nearest support level, which is located in the $80.00 – $80.50 range.

Brent Oil Tests Resistance At $90.50 – $91.00

Brent oil tested new highs as traders worried that the Strait of Hormuz would be closed for weeks, leading to severe supply shortage in global oil markets.

Currently, Brent oil is tryng to settle above the resistance at $90.50 – $91.00. In case this attempt is successful, Brent oil will head towards the next resistance level, which is located in the $95.00 – $95.50 range. A move above the $95.50 level will push Brent oil towards the psychologically important $100.00 level.

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