Natural Gas and Oil Analysis: OPEC+ Deliberations Tighten Supply, WTI at $78.50

Arslan Ali
Updated: Feb 28, 2024, 11:56 UTC

Key Points:

  • Fed's cautious rate stance and U.S. crude inventory surge hint at uncertain oil market dynamics.
  • OPEC+ deliberations on extending output cuts could significantly tighten global oil supply.
  • Russia's gasoline export ban underscores geopolitical influences on natural gas and oil markets.
Natural Gas and Oil Analysis: OPEC+ Deliberations Tighten Supply, WTI at $78.50

In this article:

Oil and Gas Dynamics: Rate Cuts, Inventories, and OPEC+ Strategy Impact Markets

Oil prices experienced a slight movement  in Asia on Wednesday due to concerns over a possible delay in the U.S. interest rate cut and an increase in U.S. crude inventories. This slowdown in uptrend came despite the potential for extended output cuts by OPEC+.

Federal Reserve officials have indicated a cautious stance towards cutting rates, emphasizing the need to control inflation, which could impact economic expectations for lower rates.

Moreover, a significant increase in U.S. crude stocks was reported, alongside developments towards a ceasefire in Gaza. If OPEC+ extends its output cuts, it could further tighten the oil market.

Additionally, Russia announced a six-month ban on gasoline exports to meet domestic demand and facilitate refinery maintenance, potentially influencing global oil and natural gas market dynamics.

Natural Gas Price Forecast

Natural Gas Price Chart
Natural Gas Price Chart

Natural Gas (NG) prices slightly receded, marking a -0.16% change, landing at $1.8300 in today’s session. The 4-hour chart delineates a pivot point at $1.7851, suggesting a bullish sentiment above this level. Key resistance points are established at $1.8661, $1.9291, and $1.9906, potentially capping upward movements.

On the flip side, immediate support is identified at $1.7257, with further floors at $1.6773 and $1.6117, which could act as buffers in case of a pullback.

The 50-day and 200-day Exponential Moving Averages, positioned at $1.7705 and $2.0127 respectively, indicate a bullish outlook if prices remain above the pivot, hinting at an upward trajectory for Natural Gas.

WTI Oil Price Forecast

WTI Price Chart
WTI Price Chart

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.

Did you find this article useful?