Oil and Natural Gas Market Analysis
Published: April 29, 2026
Author: Vladimir Zernov
Key Highlights
- Natural gas prices are under pressure as traders anticipate an upcoming EIA report.
- WTI oil prices surged following President Trump's rejection of Iran's proposal regarding the Strait of Hormuz.
- Brent oil is attempting to settle above the $119.00 mark amid rising tensions in the Middle East.
Natural Gas Market Overview
Natural gas is currently facing downward pressure as traders prepare for the upcoming EIA report, which is expected to show an increase in working gas storage by +83 Bcf from the previous week. If the actual report exceeds this estimate, it could lead to further declines in natural gas prices.
As of now, natural gas has settled below the $2.70 level and is attempting to drop below $2.65. A successful breach of this level could see prices move towards the support range of $2.50 to $2.55. The Relative Strength Index (RSI) is nearing oversold territory, indicating potential for additional downside momentum if negative catalysts arise.
WTI Oil Market Dynamics
WTI oil prices have rallied significantly after President Trump rejected Iran's proposal to open the Strait of Hormuz and lift the U.S. blockade. Trump emphasized that Iran should not possess nuclear weapons and that the blockade is more effective than military action. This rejection has heightened concerns about the potential for further escalation in the Middle East, leading traders to worry about the ongoing blockade of the Strait of Hormuz.
Recent data from the EIA Weekly Petroleum Status Report indicated a decline in crude inventories by -6.2 million barrels, significantly more than the anticipated -0.2 million barrels. This decline has contributed to the upward momentum in WTI oil prices, which have now surpassed the previous resistance levels of $102.00 to $102.50 and are approaching the next resistance at $108.50 to $109.00. A breakout above $109.00 could push prices towards $118.50 to $119.00.
Brent Oil Market Outlook
Brent oil is also experiencing upward pressure as it attempts to settle above the $118.50 to $119.00 resistance level. A successful test of this resistance could lead to further gains, potentially reaching the $125.00 mark. The current geopolitical climate, particularly developments in the Middle East, is influencing trader sentiment and could lead to rapid price movements.
Conclusion
The oil and natural gas markets are currently influenced by geopolitical tensions and inventory reports. Traders are closely monitoring these developments, as they could significantly impact price movements in the near term. The situation remains fluid, and market participants should stay informed about ongoing changes in both the geopolitical landscape and market fundamentals.