Natural Gas Is Losing Ground Amid Disappointing Weather Forecasts
Natural gas is losing ground as traders focus on mild weather forecasts, which indicate that demand will be low.
The nearest support level for natural gas is located in the $3.00 – $3.03 range. If natural gas manages to settle below the $3.00 level, it will head towards the next support at $2.85 – $2.88.
On the upside, natural gas needs to settle back above the $3.10 level to have a chance to gain upside momentum in the near term. In this case, natural gas will head towards the resistance level at $3.20 – $3.23.
WTI Oil Rallies As Houthis Attack Saudi Arabia
WTI oil tests new highs as Yemen’s Houthis claim that they have attacked Shaybah oilfield in Saudi Arabia. According to Iran-backed Houthis, the militant group has also attacked an Aramco site in Yanbu and several airports. At the time of writing, Saudi Arabia did not confirm these attacks but King Khalid International Airport has already restricted traffic.
It should be noted that Saudi Arabia has been forced to push The Future Investment Initiative Summit to 2027 due to Houthis’ attacks.
The market also waits for President Trump’s decision on Iran. The situation is a stalemate as neither Iran nor U.S. are ready for any concessions in negotiations. The strategy of maximum economic pressure on Iran did not force the country to accept U.S. terms, while oil prices kept moving higher.
At some point, U.S. may choose to restart its military operation against Iran in order to ensure that the country cannot build nuclear weapons. In turn, Iran will continue to support Houthis to ensure that they can damage Saudi Arabia’s oil facilities. Both scenarios are bullish for oil markets.
WTI oil moved above the resistance at $100.50 – $101.00 and is trying to settle above the $103.00 level. In case this attempt is successful, WTI oil will head towards the next resistance level, which is located in the $106.00 – $106.50 range. RSI remains in the moderate territory despite the strong rally, so there is plenty of room to gain additional upside momentum in the near term.
On the support side, a move below the psychologically important $100.00 level will push Brent oil towards the support level at $96.50 – $97.00.
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See all Natural Gas forecastsBrent Oil Attempts To Settle Above $109.50
Brent oil gained ground as traders focused on Houthis’ attacks against Saudi Arabia. The situation continues to deteriorate as Saudi Arabia fails to put material pressure on the Houthis. Thus, the risks to oil production in the region are rising.
Currently, Brent oil tests resistance at $109.00 – $109.50. This resistance level has been tested many times and proved its strength. In case Brent oil manages to settle above the $109.50 level, it will head towards the next resistance, which is located in the $114.50 – $115.00 range. A move above $115.00 will push Brent oil towards April highs near the $120.00 level.
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