Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Soars 7% As Houthis Hit Saudi Tankers

• Houthis attacked two tankers using missiles and drones in the Red Sea, prompting President Trump to warn that Iran and Houthis would face punishment for further attacks
• The blockade threatens the Bab al-Mandab Strait, eliminating Saudi Arabia's alternative to the Strait of Hormuz and forcing oil shipments to route around Africa to reach Asian markets
• Natural gas gained modestly after EIA reported a storage build of +32 Bcf versus expectations of +35 Bcf, with resistance at the $3.00-$3.05 range

Market Summary: Oil Surges on Red Sea Attacks, Natural Gas Rises

Key Developments

Oil Markets Experience Sharp Rally:

• WTI crude oil soared approximately 7% (+5.02% reported)
• Brent crude climbed above the psychologically critical $100 level (+5.48%)
• Catalyst: Houthi forces attacked two Saudi oil tankers in the Red Sea using missiles and drones

Geopolitical Crisis:

The Houthis announced a maritime blockade on Saudi Arabia, creating severe supply concerns. This threatens critical shipping routes through the Bab al-Mandab Strait, potentially forcing Saudi Arabia to reroute exports via the Suez Canal and around Africa to reach Asian markets. President Trump attributed responsibility to Iran and threatened punitive measures against both Iran and the Houthis.

Market Impact:

The supply disruption scenario appears worse than March conditions, compounded by depleted global oil reserves that haven't been replenished. The closure of traditional shipping routes would significantly increase transportation costs and delivery times.

Natural Gas:

• Gained ground following EIA storage report
• Working gas storage increased +32 Bcf versus +35 Bcf forecast
• Key resistance at $3.00-$3.05 range

Technical Levels:

• WTI attempting to settle above $91.50-$92.00 resistance, targeting $96.50-$97.00
• Brent testing $100.00-$100.50 resistance
• RSI indicators show overbought conditions but momentum remains strong

Cross-Market Effects:

Gold declined 2% as oil rallied, while the U.S. dollar gained strength. The S&P 500 faced pressure from rising oil prices and treasury yields.

Markets remain focused on escalating geopolitical developments and potential supply disruptions.