Key Insights
- WTI crude trading near $70, affected by US economic slowdown and Fed rate cut expectations.
- Oil prices struggle despite Red Sea naval tensions and global economic concerns.
- Upcoming US EIA and API data crucial for oil market movements.
- NG exhibiting a downtrend, with pivotal support at $2.48.
Quick Fundamental Outlook
The West Texas Intermediate (WTI) crude trades near $70 per barrel amid shifting market expectations for Federal Reserve rate cuts due to signs of US economic slowdown.
Oil prices face headwinds despite potential supply disruptions from naval incidents in the Red Sea, including a thwarted Houthi attack on a Maersk ship. Concerns over global economic deceleration and increased oil supply, especially from non-OPEC+ producers, exert downward pressure. OPEC+ plans to review production cuts in early February.
Upcoming US EIA and API data, expected to show a decline in crude but an increase in distillate and gasoline stocks, will impact USOIL, UKOIL, and NG prices.
Natural Gas Price Forecast
Natural Gas (NG) is currently exhibiting a downward trend, with a 0.71% decrease to $2.5070. The pivotal point for NG is established at $2.48, with immediate resistances at $2.61, $2.70, and $2.80. Support levels are at $2.40, $2.31, and $2.20.
The Relative Strength Index (RSI) is neutral at 50, indicating neither overbought nor oversold conditions. The Moving Average Convergence Divergence (MACD) at -0.004, with a signal line at 0.017, suggests a mixed outlook.
The 50-Day Exponential Moving Average (EMA) at $2.49 appears to be providing support for Natural Gas around $2.45. The current technical outlook for NG is cautiously optimistic, with a bullish trend above the $2.45 mark.
WTI Oil Price Forecast
US Oil (USOIL) is currently witnessing a bearish trend, trading at $70.05 with a 0.6% decline. The pivot point is set at $70.05, while immediate resistance levels are identified at $71.95, $73.69, and $76.11.
The asset finds support at lower levels of $69.07, $67.70, and $66.76. The Relative Strength Index (RSI) at 32 suggests a bearish sentiment, inching towards oversold territory. The Moving Average Convergence Divergence (MACD) indicator reflects a negative trend at -0.2300.
Additionally, a bearish engulfing candle pattern near the $71 mark indicates potential downward momentum. Overall, the technical outlook for USOIL remains bearish below the $71 threshold.
Brent Oil Price Forecast
