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Natural Gas and Oil Analysis: Market Reactions to OPEC+ Decisions and Technical Trends

By:
Arslan Ali

Oil prices exhibit stabilization following OPEC+'s production cuts, with Brent crude and WTI futures experiencing modest increases amid market skepticism.

Natural Gas and Oil Analysis: Market Reactions to OPEC+ Decisions and Technical Trends

In this article:

Key Insights

  • Oil prices stabilize post-2% Thursday drop, amid skepticism over OPEC+’s production cut efficacy.
  • Brent crude and WTI futures see a modest rise, despite mixed market reactions to OPEC+ decisions.
  • Natural Gas trades lower at $2.77, facing technical resistance levels, with a bearish RSI indication.
  • US Oil shows positive momentum, with a cautiously bullish trend above $75.25.
  • UK Oil experiences an uptick, yet technical indicators suggest a complex, cautiously bullish market scenario.

Quick Fundamental Outlook

Natural Gas Price Forecast

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

On December 1st, Natural Gas (NG) is experiencing a slight downturn, trading at $2.77, down by 0.79%. The current price hovers below the pivot point of $2.87, with immediate resistance levels at $3.00, $3.09, and $3.22. Support is more immediate at $2.75, with further levels at $2.62 and $2.52.

The Relative Strength Index (RSI) stands at 39, leaning towards a bearish sentiment. The 50-Day Exponential Moving Average (EMA) is at $2.84, slightly above the current price, suggesting a bearish trend.

However, a triple bottom pattern observed in the chart indicates support for NG at the $2.75 level, hinting at potential resilience. Given this technical setup, the overall trend for Natural Gas appears to be cautiously bullish above the $2.75 mark, and in the short term, it may challenge resistance levels, particularly around $3.00, in a market that remains sensitive to evolving energy dynamics.

WTI Oil Price Forecast

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

Brent Oil Price Forecast

Brent Oil Chart
Brent Oil Chart
On December 1st, UK Oil is witnessing an uptick, trading at $81.06, up by 0.83%. The commodity is currently just below its pivot point of $82.17 and is facing a series of resistance levels at $83.96, $85.65, and $87.42. Key support levels are established at $80.12, $78.46, and $76.45.

The Relative Strength Index (RSI) is at 45, indicating a neutral to slightly bearish market sentiment. The 50-Day Exponential Moving Average (EMA) stands at $81.41, suggesting a possible selling trend. An upward channel pattern is observed, supporting a buying trend over the $80.10 mark.

This contradictory signal between the 50 EMA and the chart pattern creates a complex trading scenario. Therefore, the overall trend for UK Oil appears cautiously bullish above the $80 threshold.

In the short term, the market might test the resistance levels, particularly around $83.96, reflecting the dynamic interplay of various market forces.

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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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