Oil Soars Amid Escalating Middle East Tensions
The natural gas market has seen significant movements as traders react to data from the EIA report. According to the report, working gas in storage increased by +53 Bcf from the previous week, matching analyst estimates.
This development appears to have caught short-sellers off guard, prompting them to close their positions and driving natural gas prices upwards. Currently, natural gas is attempting to settle above the resistance level of $3.25, $3.30, with a successful break potentially sending it towards the next resistance range of $3.55, $3.60.
Meanwhile, the global oil market has seen a rally in response to escalating tensions in the Middle East. The Houthis' attack on Saudi Arabia and Iran's threats to block the Strait of Hormuz have increased concerns about potential disruptions to global oil supplies.
WTI oil has tested new highs, with traders focusing on the risks of further escalation. If WTI stays above $92.50, $93.00, it may move towards the next resistance level at $97.00, $97.50, potentially even testing the $100.00 mark.