Natural Gas and Oil Analysis: Market Focus on OPEC+ Decisions

Arslan Ali

Natural gas's subtle gain mirrors market caution, with eyes on pivotal resistance levels and evolving energy demand narratives.

Energy Recap

In this article:

Key Insights

  • OPEC+ meeting focus: Potential oil supply cuts in 2024 impacting prices.
  • Brent crude and WTI rise: Brent at $83.80, WTI at $78.41.
  • OPEC+ could significantly reduce production, affecting global supplies.
  • U.N. climate conference and African quota disputes may influence OPEC+.

Quick Fundamental Outlook

Natural Gas Price Forecast

Natural Gas (NG) Chart
Natural Gas (NG) Chart

Natural gas futures exhibited a modest gain of 1.22%, with prices nudging to $2.80 on November 30, amid a broader market contemplation of energy demand prospects.

The commodity’s rise remains tempered, hovering below the pivot point of $2.87, indicating a delicate interplay between current valuations and investor sentiment. The RSI at 39 suggests the potential for upward movement has room before reaching overbought conditions. Yet, NG’s proximity to the 50-day EMA of $2.81 could signal a tenuous bullish trend.

As traders look ahead, resistance levels at $3.00 await as the next litmus test for sustained bullish behavior, with the potential to climb higher if market conditions align.

WTI Oil Price Forecast

WTI Crude Oil (WTI) Chart
WTI Crude Oil (WTI) Chart

US oil prices edged upward by 1.09% to $78.77 on November 30, reflecting a cautiously optimistic sentiment in the energy markets. Technical indicators signal a bullish stance as prices pivot above the $78.40 mark, with potential resistance at $79.85.

Further bullish confirmation is suggested by the Relative Strength Index at 68—nearing overbought territory—and prices maintaining above the 50-day EMA of $76.66.

The breakout from a downward channel hints at a continuation of the upward trend. If this momentum is sustained, US oil could soon challenge higher resistance levels, with $81.04 and $82.33 as key targets in the short term.

Brent Oil Price Forecast

Brent Oil Chart
Brent Oil Chart

UK oil has advanced with a 1.3% increase to $83.48 on the last day of November, as the market’s pulse quickens in anticipation of OPEC+ decisions. This uptick situates the commodity firmly above the day’s pivot point of $83.19, paving the path toward immediate resistance levels at $85.03.

Technical indicators, including a Relative Strength Index of 66, suggest growing bullish sentiment without breaching overbought territory. Additionally, the price standing tall above the 50-day EMA of $81.46 corroborates the uptrend.

A symmetrical triangle pattern’s breakout reinforces this optimism, indicating potential for continued gains. Traders now watch if this momentum can carry UK oil beyond $83.15, setting sights on resistance tests up to $89.36 in forthcoming sessions.

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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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