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Natural Gas and Oil Analysis: Market Dynamics Post-Fed’s Rate Decisions

By:
Arslan Ali
Published: Dec 14, 2023, 12:47 UTC

Oil prices have risen, driven by a weaker dollar and the IEA's revised oil demand forecast, signalling an upbeat market despite OPEC+'s recent cuts.

Natural Gas and Oil Analysis: Market Dynamics Post-Fed’s Rate Decisions

In this article:

Key Insights

  • Oil prices rise on weaker dollar and increased IEA oil demand forecast.
  • IEA projects 1.1 million bpd increase in global oil consumption.
  • Federal Reserve’s end to rate hikes boosts oil’s affordability.
  • Natural Gas shows potential for rebound from oversold conditions.
  • USOIL and UKOIL exhibit bullish trends near key pivot points.

Quick Fundamental Outlook

Natural Gas Price Forecast

Natural Gas Chart
Natural Gas Chart

In today’s trading session, Natural Gas (NG) is witnessing a subtle downtick, with its price declining by 0.04% to $2.32. Positioned just above its pivot point at $2.25, NG faces resistance levels at $2.52, $2.69, and $2.94, which could define its short-term trajectory.

Support is observed lower at $2.06, $1.85, and $1.65, marking key levels where buyers might emerge. The RSI, deeply entrenched in the oversold territory at 23, hints at potential for a rebound. The MACD’s marginal positive divergence also suggests a nascent bullish momentum.

Currently trading well below its 50 EMA at $2.90, NG is showing signs of a potential double bottom pattern at the support level of $2.25, indicating a possible upswing. The overall trend for NG appears bullish above the $2.25 mark, suggesting that the commodity may soon test higher resistance levels.

WTI Oil Price Forecast

USOIL Chart
USOIL Chart

In today’s market, US Oil (USOIL) has seen a notable ascent, climbing 1.3% to $70.78. This move places the commodity near a pivotal point at $71.87, with an eye on resistance levels at $74.48, $76.87, and $79.68. Support levels lie at $68.07, $66.21, and $63.42, marking potential fallbacks in case of a downturn.

The RSI at 55 suggests a mildly bullish sentiment, while the MACD, currently at -0.11 against a signal of -2.60, indicates potential for an upward trend. The 50 EMA at $71.16 may cap upside movements near the $71.85 mark, but a bullish crossover above this level could stimulate further buying interest.

The overall trend appears bearish below $71.85, with the possibility of testing higher resistances if the asset breaks above this threshold.

Brent Oil Price Forecast

UKOIL Chart
UKOIL Chart

UK Oil (UKOIL) is exhibiting a buoyant trend in today’s market, recording a 1.14% rise to $75.63. Currently, it hovers just below a critical pivot point of $76.59. The commodity faces immediate resistance levels at $79.15, $81.55, and $84.11, which if surpassed, could signal a stronger bullish momentum.

Conversely, support levels are established at $73.82, $72.15, and $70.22, marking potential zones for bearish pullbacks. The RSI stands at 55, indicating a mild bullish sentiment, while the MACD’s value of 0.260 above its signal line suggests potential for further upward movement.

The 50 EMA at $75.93 may act as a temporary ceiling, with a bullish crossover above this level potentially driving buying interest. The trend for UKOIL appears bearish below the $76.60 mark, with a shift to bullishness above this threshold. The market awaits to see if resistance levels will be tested in the coming days.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Arslan, a webinar speaker and derivatives analyst, has an MBA in Finance and MPhil in Behavioral Finance. He guides financial analysis, trading, and cryptocurrency forecasting. Expert in trading psychology and sentiment.

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