Natural Gas, WTI Oil, Brent Oil Forecasts – WTI Oil Soars 4% As Houthis Attack Saudi Arabia

• Houthis captured territory in Yemen and now control most of the Bab el-Mandeb Strait, forcing Saudi Arabia to issue air alerts for Jeddah and shutting down the East-West pipeline for weeks
• WTI oil climbed above $105 resistance targeting $109-$109.50, while Brent oil approached $109 with potential to reach $112.50-$113.00 despite RSI showing overbought conditions
• Natural gas rose above $2.90 on expectations of strong U.S. LNG demand driven by low European storage levels, with next resistance at $3.00-$3.05

Market Summary: Energy Markets Rally on Middle East Tensions

Key Developments

WTI crude oil surged 4% (+3.02% intraday), breaking above $105.00 and testing the $106.00 level, while Brent crude rose toward $109.00 (+0.91%). Natural gas gained 2.16%, attempting to settle above $2.90.

Primary Catalysts

The energy rally was triggered by escalating Middle East tensions. Houthi forces, after capturing additional territory in Yemen, intensified attacks on Saudi Arabia, forcing the kingdom to issue air alerts for Jeddah, its second-largest city. Critically, Saudi Arabia's East-West pipeline—which bypasses the Strait of Hormuz—will be shut down for weeks. The Houthis now largely control the Bab el-Mandeb Strait following battlefield successes.

An alleged Russia-Ukraine energy truce proved false, with both sides continuing attacks on energy infrastructure overnight, adding further supply concerns.

Technical Outlook

WTI oil broke resistance at $102.50-$103.00, targeting $109.00-$109.50 next, though RSI indicates overbought conditions. Brent is testing resistance at $108.50-$109.00, with $112.50-$113.00 as the next target. Natural gas faces resistance at the 50-day moving average ($2.89), with upside potential to $3.00-$3.05 if broken.

Market Implications

Declining global oil reserves combined with Saudi disruptions point to worsening supply deficits. Traders are focusing on physical market tightness, while natural gas demand expectations center on strong U.S. LNG exports to Europe, where storage levels remain critically low.

The geopolitical premium appears sustainable given ongoing regional instability and lack of diplomatic progress with Iran.