Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Soars 9% As Trump Restarts Naval Blockade Of Iran

Natural gas is losing ground as weather forecast updates did not provide any support. Demand is expected to stay high in the next seven days, but traders remain focused on the recent EIA report, which showed that stocks are building faster than expected. From the technical point of view, natural gas settled below the previous support at $3.00 – $3.05 and continues its attempts to settle below the $2.90 level. In case natural gas manages to settle below $2.90, it will head towards the next support level at $2.75 – $2.80.

WTI oil rallied as traders reacted to rising tensions in the Middle East. President Trump announced that U.S. will impose a naval blockade on Iranian ports. He also demanded a 20% fee on all cargo going through the Strait of Hormuz, saying that the U.S. would become a “guardian” of the Strait. It is not clear what Gulf countries think about Trump’s initiative. Most likely, they are shocked by the size of the potential fee. Reports indicated that Iran charged up to 2% for safe passage through the Strait, while Trump’s fee is 10 times higher. At the time of writing, the U.S. did not provide any details about the plan.