Natural Gas and Oil Analysis: Red Sea Tensions Propel Prices Upward

Key Insights

• Houthi attacks in the Red Sea escalate oil supply concerns, boosting oil prices.
• BP halts Red Sea transits; other firms avoid Suez Canal, affecting global oil flow.
• Brent crude and US West Texas Intermediate crude witness a modest rise.
• Russia’s oil export cuts in December further support rising oil prices.
• The geopolitical situation impacts USOIL, UKOIL, and Natural Gas markets

Quick Fundamental Outlook

Natural Gas Price Forecast

Natural Gas (NG) is currently witnessing a notable uptick in the energy market, registering a 3.59% increase with a current price of $2.5140. As per the 4-hour chart, NG’s pivot point stands at $2.25, with significant resistance levels set at $2.69, $2.87, and $2.94.

In terms of support, NG finds immediate levels at $2.06, with additional levels at $1.85 and $1.65. The Relative Strength Index (RSI) is at 38, suggesting a bearish sentiment, while the Moving Average Convergence Divergence (MACD) shows slight upward momentum with a value of 0.0227 against a signal line of 0.0236.

The 50-Day Exponential Moving Average (EMA) is at $2.87, indicating a potential bullish trend if NG breaks above this level. The current pattern, completing a 23.6% Fibonacci retracement at $2.52, suggests a possible breakout leading NG towards higher Fibonacci levels.

Overall, NG appears to be in a bullish phase above the $2.25 mark, and short-term expectations indicate testing higher resistance levels, especially if it sustains above key support areas. Investors and traders should closely observe these indicators for upcoming market movements.

WTI Oil Price Forecast

USOIL is currently navigating through a complex market landscape, trading at $72.00, reflecting a 0.59% decrease. The technical analysis of the 4-hour chart places the pivot point at $72.56, with crucial resistance levels identified at $74.27, $76.14, and $78.44.

On the flip side, immediate support levels are found at $70.21, followed by $68.09 and $66.19. The Relative Strength Index (RSI) stands at a balanced 55.00, indicating a neutral to slightly bullish market sentiment. The Moving Average Convergence Divergence (MACD) at 0.11 with a signal line of 0.4000 suggests potential for upward momentum.

Additionally, the 50-Day Exponential Moving Average (EMA) is at $71.18, currently below USOIL’s trading price, hinting at a short-term bullish trend. The observed double top pattern, extending resistance at $72.50, could play a pivotal role in future price movements.

In conclusion, the overall trend for USOIL appears bullish above the $70 mark, with a short-term expectation of testing higher resistance levels, particularly if it maintains above the key support points. Investors should closely monitor these technical indicators for potential shifts in the market dynamics.

Brent Oil Price Forecast