
Friday’s move has the May 2026 WTI NYMEX futures are trading below the 8-, 13-, and 21-day Moving Averages with a Low that breached the Lower-Bollinger Band limit. Volume is down to 80,000 as May expires next week and traders turn their attention to June.
The Relative Strength Indicator (RSI), a momentum indicator, has fallen back into neutral territory at 42. Resistance is now pegged at $93.70 (8-day MA) while near-term Support is $82.45 (Bollinger Band). As has been the pattern for several weeks now, traders have to be cautious with their Friday positions as the market is closed until Sunday evening and the US/Iran talks continue on Saturday.
Looking ahead
Questions now remain in terms of the duration of the Israeli ceasefire with Lebanon which Iran has tied to the opening of the Strait of Hormuz. Should Israel violate the ceasefire, it would put Iran’s IRGC back in direct conflict with US naval forces in the area should the former attempt to close the Strait again. US/Iran negotiations are scheduled to continue this weekend in Islamabad.
Once again, markets will be closed until Sunday evening so the outcome of those talks will be key to market direction on the Open. Should peace hold, there will need to be a very detailed assessment of the long-term damage to all oil and gas infrastructure in the region. The tanker tracking map below indicates loaded oil vessels are exiting the Strait of Hormuz.
Natural gas, fundamental analysis
May NYMEX natural gas futures have now been on a 5-week downtrend on mild weather and a larger-than-expected storage injections despite healthy LNG export volumes. The week’s High was Monday’s $2.72/MMbtu while the Low was Tuesday’s $2.56, a tight range which indicates market direction uncertainty.
Natural gas demand this week has been estimated at about 95 bcfd while production was thought to be 106 bcfd. LNG exports are up +14% from year ago levels to 19 bcfd. In the UK, natural gas prices at the NBP were most recently down to $13.35/MMbtu. Dutch TTF futures were also lower at $13.45/MMbtu. Asia’s JKM was quoted at $19.20/MMbtu, only slightly down from the prior week.
The EIA’s Weekly Natural Gas Storage Report indicated an injection of 59 bcf vs. a forecast of +55 and a 5-year average of +24 bcf. Total gas in storage is now 1.970 tcf, 6.8% above last year and 5.8% above the 5-year average.



















