Oil Markets Rally Amid Global Diesel Shortage and Hotter Weather Forecasts

Natural gas prices rallied as traders bet on stronger demand due to hotter weather forecasts. The commodity made an attempt to settle above the resistance at $3.00, $3.05, with room for further momentum if the right catalysts emerge.

WTI oil also gained ground, rallying as traders focused on the global diesel shortage. The situation in European diesel markets triggered a strong rally in futures and provided support to oil markets.

Brent oil settled back above $100.00, but its price action is still closely tied to developments in Europe's diesel market. Any negotiations between the US and Iran would likely take weeks, keeping the Strait of Hormuz blocked and limiting supply from the Middle East.