Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Dives As Saudi Aramco Cuts Prices For Asian Buyers

• Saudi Aramco cut prices for Asian clients by as much as $5 per barrel, suggesting oil flows through the Strait of Hormuz are normalizing despite Iran's naval blockade
• WTI oil faces support at $88.50-$89.00 with next target at $84.50-$85.00, while Brent crude tests the $100 level with potential decline to $97.00-$97.50
• Natural gas continues rebounding despite low demand, attempting to settle above resistance at $3.00-$3.05 with next target at $3.20-$3.25

Market Summary: Oil Prices Decline on Saudi Aramco Price Cuts

Key Developments

WTI and Brent Oil experienced significant declines following Saudi Aramco's decision to cut prices for Asian buyers by up to $5 per barrel below the regional benchmark. This price reduction signals improving oil flow through the Strait of Hormuz, easing supply concerns.

Middle East Geopolitical Factors

Saudi Arabia has fully restored operations on its East-West pipeline, which bypasses the Strait of Hormuz. The kingdom is reportedly preparing to support Yemen's official government against Houthi forces. Meanwhile, Iran faces mounting pressure, having loaded no oil cargo last month due to a naval blockade, raising escalation risks. Reports suggest potential U.S.-Iran negotiations in Doha, Qatar.

Technical Price Levels

WTI Oil is testing support at $88.50-$89.00, with potential downside targets at $84.50-$85.00 if it breaks below $85.00.

Brent Oil is challenging the psychological $100 level, with support at $97.00-$97.50 and the 50-day moving average at $94.84. Upside resistance sits at $102.00 and $109.00-$109.50.

Natural Gas is attempting to break above resistance at $3.00-$3.05 despite weak demand, with next resistance at $3.20-$3.25.

Market Implications

The Saudi price cuts suggest confidence in stabilizing regional oil flows, reducing geopolitical risk premiums. However, the Iranian blockade situation remains a wildcard that could reverse current trends if tensions escalate. The combination of improving supply conditions and potential diplomatic progress is currently pressuring oil prices lower.