Oil and Natural Gas Prices Surge on Geopolitical Tensions and Weather Forecasts

Natural gas prices have extended their upward trajectory, driven by favorable weather forecasts and short-covering activity. The commodity recently settled above the resistance level of $3.00, $3.05 and is now testing the $3.10 mark. If it manages to break through, the next target could be the $3.20, $3.25 range. Support is seen at $3.00, with further downside potential if it drops below the 50 MA at $2.91.

WTI oil has rebounded from session lows following reports of increased Iranian activity in the Strait of Hormuz. Iran is reportedly attempting to restrict tanker traffic, raising concerns over potential supply disruptions. Traders are also watching for the outcome of the International Energy Agency’s (IEA) meeting, where a release of 100 million barrels of diesel and crude inventories is on the agenda. WTI oil has recovered above the $89.00 level, with resistance at $92.50, $93.00 and support at $88.50, $89.00.

Brent oil has also climbed back above the $100.00 level, supported by geopolitical tensions in the Middle East. The next resistance level is at $101.50, $102.00, with a stronger barrier at $109.00, $109.50. Support is located at $97.00, with the 50 MA at $95.19 acting as an additional floor.