Market Overview
Oil prices rose in Asian trade on Thursday, continuing gains from the previous session. A weaker-than-expected U.S. Consumer Price Index (CPI) lowered the dollar and increased hopes for interest rate cuts, boosting oil prices. A larger-than-expected draw in U.S. inventories further fueled bets on tighter global supplies.
Additionally, optimism over China’s planned 1 trillion yuan ($138 billion) bond issuance and potential supply disruptions from Canadian wildfires supported prices. Official data showed U.S. oil inventories fell by 2.5 million barrels in the week ending May 10, signalling stronger demand.
However, the International Energy Agency (IEA) cut its 2024 demand outlook by 140,000 barrels per day, contrasting with OPEC’s forecast of 2.25 million barrels per day.
Natural Gas Price Forecast
Natural Gas (NG) is trading at $2.413, up 0.35%. Key price levels include a pivot point at $2.38. Immediate resistance levels are at $2.45, $2.51, and $2.56. Immediate support levels are at $2.31, $2.23, and $2.15.
Technical indicators show mixed signals. The 50-day Exponential Moving Average (EMA) is at $2.26, and the 200-day EMA is at $2.02, both suggesting a bullish trend above these levels.
In conclusion, NG remains bullish above the pivot point at $2.38. A break below this level could trigger a significant selling trend.
WTI Oil Price Forecast
WTI Crude Oil (USOIL) is trading at $79.04, up 0.21%. Key price levels include a pivot point at $78.45. Immediate resistance levels are at $79.48, $80.67, and $81.52. Immediate support levels are at $77.65, $76.75, and $75.83.
Technical indicators show mixed signals. The 50-day Exponential Moving Average (EMA) is at $78.99, with the price slightly above this level, indicating a bullish trend. The 200-day EMA is at $80.74, suggesting longer-term resistance. In conclusion, USOIL remains bullish above the pivot point at $78.45.
Brent Oil Price Forecast
Brent Crude Oil (UKOIL) is trading at $83.14, up 0.24%. Key price levels to watch include a pivot point at $82.98. Immediate resistance levels are at $83.91, $84.49, and $85.57. On the support side, immediate levels are at $82.08, $81.04, and $80.05.
Technical indicators show a mixed outlook. The 50-day Exponential Moving Average (EMA) is at $83.43, indicating that the current price is slightly below this level, suggesting potential resistance.
The 200-day EMA stands at $85.27, highlighting a longer-term resistance level. In conclusion, UKOIL maintains a bullish stance above the pivot point at $82.98.
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