Natural Gas and Oil Forecast: Diesel Shortage Draws Washington In
Author: Arslan Ali
Updated: October 21, 2026
Key Highlights
- Houthis claimed attacks on Saudi Aramco facilities, impacting oil supply.
- US crude oil stocks fell by 4.93 million barrels, indicating tightening supply.
- WTI crude oil is trading near $99.15, with potential resistance at $101.38.
- Brent crude is holding near $110.31, with a bullish outlook if it breaks above $112.00.
- Natural gas prices are bearish, trading around $2.96, with support at $2.91.
Market Overview
The article discusses the current state of the oil and natural gas markets, highlighting the impact of geopolitical tensions and supply constraints. The Houthis have claimed responsibility for attacks on Saudi oil infrastructure, which has raised concerns about supply disruptions. In the US, crude oil inventories continue to decline, exacerbated by a diesel fuel shortage that has prompted government intervention.
WTI Crude Oil Analysis
WTI crude oil is currently trading at $99.15, showing a bullish trend above the support level of $97.47. A breakout above $101.38 could lead to further gains towards $104.40 and $106.78. Conversely, a close below $95.31 would invalidate the bullish outlook.
Brent Crude Oil Analysis
Brent crude is trading near $110.31, within a defined rising channel. A move above $112.00 could expose prices to $113.96 and $115.76. The first support level is at $108.21, with a critical level at $105.94 that could indicate a channel break if breached.
Natural Gas Analysis
Natural gas prices have fallen to $2.96, breaking below a rising trendline. The first support level is at $2.91, with potential further declines to $2.86 and $2.79 if this level is breached. The market sentiment is bearish, with the RSI indicating a downward momentum.
Conclusion
The article emphasizes the tight supply conditions in the oil market due to geopolitical risks and declining inventories, while natural gas faces bearish pressures from warmer weather forecasts. Traders should monitor key resistance and support levels for potential market movements.