Oil markets rally as Israel rejects Hamas ceasefire proposal, with WTI oil moving towards $76.00 and Brent oil rebounding above $81.00 amid rising tensions in the Middle East. Meanwhile, natural gas retreats as traders react to the EIA report showing a decline in working gas in storage, with WTI oil and Brent oil gaining upside momentum due to geopolitical concerns and technical factors.
Oil markets are testing weekly highs as natural gas faces pressure due to anticipated warm weather, while WTI oil attempts to settle above $75.00 following claims by Houthis of an attack on a U.S. military cargo ship, and Brent oil tests the $80.00 level amidst escalating tensions in the Middle East. If natural gas remains below $2.45, it may head towards support at $2.10 - $2.15, while WTI oil could move towards the $79.00 - $80.00 resistance if it settles above $75.00. Brent oil's RSI indicates potential for additional momentum if the right catalysts emerge.
WTI oil rose above $72 as tensions in the Middle East escalated due to a Houthi attack on a U.S.-owned vessel, while natural gas prices retreated on bearish weather forecasts. Brent oil also moved above $78 amid concerns about potential disruptions in Middle East oil supply, with technical analysis indicating key resistance levels for each commodity.
Brent oil prices fell below $72 per barrel due to turmoil in the banking sector, with the downfall of Silicon Valley Bank and the takeover of Credit Suisse by UBS. OPEC+ delegates noted that the drop was likely temporary and not underpinned by supply-demand fundamentals surrounding the physical commodity, but stressed the need to monitor the potential effect on central bank interest rate decisions and inflation. Goldman Sachs cut their oil price outlook, now expecting Brent prices to hit $94 per barrel in the upcoming 12 months.
