Natural Gas and Oil Analysis: Middle East Tensions Fuel Price Spikes Today

Key Insights

• Middle East tensions spike oil prices by 2% after a tragic Gaza hospital explosion.
• Biden visits Israel to address the escalating Gaza conflict after a canceled summit.
• Natural Gas prices display cautious optimism; $3.47 resistance is the immediate focus.
• WTI Crude Oil leans bullish with a current price of $89; $91.40 is the next resistance.
• Brent oil at $92.14 looks bullish; eyes are on the $95.30 resistance given current momentum.

Quick Fundamental Outlook

Oil prices jumped almost 2% on Wednesday due to increasing tensions in the Middle East after a devastating explosion at a Gaza hospital led to numerous casualties. This event raised fears about potential disruptions to the oil supply from the area.

Earlier in the day, benchmarks rose by over $2, reaching a two-week high. The spike was influenced by the tragic incident in Gaza City, with both Israeli and Palestinian officials pointing fingers at each other.

Consequently, Jordan called off a planned summit with U.S. President Joe Biden, along with Egyptian and Palestinian leaders. Biden, however, started his visit to Israel on Wednesday to discuss the intensifying Gaza conflict.

Natural Gas Price Forecast

Natural Gas (NG) is showing cautious optimism, currently priced at 0.3560, marking a 0.84% rise in the last 24 hours. Based on a 4-hour chart timeframe, we’ve identified several key price levels to watch. The pivot point stands at $3.32. On the upside, resistance levels are spotted at $3.47, $3.58, and $3.66. Should bears take control, immediate support lies at $3.26, with subsequent levels at $3.17 and $3.06.

In the realm of technical indicators, the RSI stands at 46, suggesting a neutral sentiment, though leaning slightly bearish as it’s under 50. The MACD presents a potential bullish undertone as the line is above the signal, hinting at possible upward momentum. The 50-day EMA has the price at $3.36, indicating that the asset is trading slightly above its short-term average.

Concluding, the outlook remains cautiously optimistic for Natural Gas. A sustained move above $3.32 will strengthen the bullish argument, while slipping below may invite bearish plays. The immediate focus will be on the $3.47 resistance in the short term.

WTI Oil Price Forecast

The WTI Crude Oil (WTI) market has taken a bullish turn, currently priced at $89.00, registering a positive shift of 1.49% in the past 24 hours. Analyzing the 4-hour chart, several pivotal price levels become apparent. The pivot point is established at $86.56, with immediate resistance at $88.91, followed by hurdles at $91.40 and $93.14. Conversely, support solidifies at $84.76, with subsequent buffers at $82.24 and $80.58.

Delving into the technical indicators, the RSI stands at 65, reflecting bullish sentiment as it surpasses the 50 mark. The 50-day EMA places the price at $86.46, further underscoring the bullish narrative as WTI Oil trades above this mark. Adding to this bullish scenario, the asset has recently violated an upward channel, offering another affirmative signal for bulls.

In conclusion, WTI Oil’s technical framework leans bullish, especially while it remains above the $86.46 threshold. In the short term, eyes are set on the $91.40 resistance, which might be challenged if the current momentum holds.

Brent Oil Price Forecast

Brent oil has presented a bullish inclination, with its price pegged at $92.14, marking an ascent of 1.55% in the last 24 hours. Gleaning insights from the 4-hour chart, key price levels manifest. A pivot point settles at $91.18, while immediate resistance is detected at $93.35. This is followed by subsequent resistances at $95.30 and $97.91. Conversely, immediate support is found at $88.99, with ensuing supports at $87.18 and $85.08.

From a technical perspective, the RSI stands at 66, signifying a bullish sentiment as it remains above the midpoint. The MACD reveals a bullish trend, hinting at continued upward momentum as the MACD line currently surges beyond the signal. The price remains above the 50-day EMA, located at $89.11, emphasizing a short-term bullish momentum. Notably, there’s been a bullish breakout from an upward channel at $92.50, further reinforcing the bullish undertone.

To conclude, Brent Oil’s trajectory appears predominantly bullish, especially while positioned above the $91.20 mark. The short-term outlook suggests a potential challenge to the $95.30 resistance if current momentum persists.

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