Natural Gas, WTI Oil, Brent Oil Forecasts – WTI Oil Soars 4% As Houthis Attack Saudi Arabia

Natural Gas Attempts To Settle Above $2.90

Natural gas gains ground as traders focus on the rally in Europe, which is driven by low storage levels. The market expects that demand for U.S. LNG would be extremely strong.

In case natural gas manages to settle above the 50 MA at $2.89, it will move towards the resistance level at $3.00 – $3.05. A successful test of this level will push natural gas towards the $3.25 level.

On the support side, a move below $2.89 will push natural gas back towards the support level, which is located near recent lows at $2.75 – $2.80.

WTI Oil Tests New Highs As Houthis Put Pressure On Saudi Arabia

WTI oil rallied as traders focused on on Saudi Arabia’s problems. According to recent reports, the key East-West pipeline, which helps bypass the Strait of Hormuz, would be shut down for weeks.

Houthis continue to attack Saudi Arabia after capturing more territory in Yemen. The Bab el-Mandeb Strait is mostly controlled by the Houthis after their recent success on the battlefield against the official government of Yemen. This morning, Saudi Arabia was forced to issue air alerts for Jeddah, which is the country’s second biggest city.

The market is focused on supply disruptions in Saudi Arabia and bets that the situation may get worse before it gets better.

Yesterday, President Trump said that Russia and Ukraine agreed to halt strikes against energy targets. Neither Russia nor Ukraine confirmed the deal. This night, Ukraine attacked a Russian refinery, while Russia delivered strikes energy-related facilities in the Ukraine. Put simply, there’s no energy truce between Russia and Ukraine, which is bullish for oil markets.

WTI oil climbed above the resistance level at $102.50 – $103.00 and is trying to settle above the $106.00 level. In case this attempt is successful, WTI oil will head towards the resistance at $109.00 – $109.50. RSI is in the overbought territory, but there is enough room to gain additional upside momentum as traders focus on supply disruptions.

Brent Oil Rallies Amid Supply Worries

Brent oil gained strong upside momentum as traders focused on the deficit in physical markets. Global oil reserves decline on a daily basis, and Saudi Arabia’s problems will make the situation much worse.

President Trump has recently hinted that U.S. may negotiate with Iran, but it remains to be seen whether U.S. or Iran are ready for serious negotiations. There are no signs indicating that Iran is ready to make any concessions at a time when the country’s allies, Houthis, have achieved major success in Yemen.

Currently, Brent oil is trying to settle above the resistance level at $108.50 – $109.00. This resistance level has been tested several times and proved its strength. A successful test of the resistance at $108.50 – $109.00 will push Brent oil towards the next resistance level at $112.50 – $113.00.

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