Natural Gas Tests New Highs
Natural gas gains ground as weather forecasts indicate that demand could increase at the end of the week.
Currently, natural gas is trying to settle above the resistance at $3.20 – $3.25. In case this attempt is successful, natural gas will head towards the next resistance level, which is located in the $3.40 – $3.45 range.
On the support side, a move below the $3.15 level will open the way to the test of the support at $3.00 – $3.05. In case natural gas settles below $3.00, it will head towards the 50 MA at $2.95.
WTI Oil Gains Ground As Saudi Arabia Warns Sanaa Residents To Leave The Area
WTI oil is moving higher as traders focus on the situation in Saudi Arabia. On Tuesday, Iran-backed Houthis continued to attack the country with missiles and drones. The coalition, led by Saudi Arabia, warned citizens of Houthi-held capital Sanaa to leave the area. More fighting is expected to take place in the upcoming days.
President Trump said that Houthis were trying to drive up oil prices ahead of U.S. elections. He added that Houthis were “behaving very badly”. It remains to be seen whether U.S is ready to join the Saudi-led coalition in its fight against the Houthis. That said, Trump indicated that he could ask Turkish President Erdogan to support Saudi Arabia.
Recent reports indicate that Iran’s attacks on ships going through the Strait of Hormuz have increased. According to the reports, the traffic through the Strait could be slowing down. It’s hard to estimate whether oil flows through the Strait of Hormuz have declined as shipowners do everything they can to hide their vessels from Iran.
WTI oil moved above the resistance at $92.50 – $93.00 and is trying to settle above the $94.00 level. In case this attempt is successful, WTI oil will head towards the next resistance level, which is located in the $96.50 – $97.00 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.
On the support side, a move below the $92.00 level will push WTI oil towards the 50 MA at $89.88. If WTI oil settles below the 50 MA, it will get to the test of the support at $88.50 – $89.00.
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See all Natural Gas forecastsBrent Oil Is Flat Amid Profit-Taking
Brent oil is swinging between gains and losses as traders take some profits off the table despite escalation in the Middle East. The risks of a wider conflict in the Middle East are rising on a daily basis, but traders are not ready to increase purchases of oil.
If Brent oil climbs above the $106.00 level, it will head towards the resistance level, which is located in the $109.00 – $109.50 range. On the support side, Brent oil needs to settle back below the $105.00 level to have a chance to gain downside momentum in the near term. In this case, Brent oil will move towards the support at $101.50 – $102.00.
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