Natural Gas and Oil Forecast: Brent Drops to $82.66, WTI at $77.95 – What’s Next?

By:

Updated: May 8, 2024, 10:39 GMT+00:00

Key Points:

Oil prices slide due to increased U.S. inventories and weak demand, Brent at $82.66.
NG maintains slight decline at $2.326, resistance set at $2.34 and $2.40.
OPEC+ decisions and U.S. stock data continue to influence oil and gas market dynamics.

Natural Gas and Oil Forecast: Brent Drops to $82.66, WTI at $77.95 – What’s Next?

Market Overview

Oil prices decreased in early Asian trading on Wednesday due to growing U.S. crude and fuel inventories and weaker demand, which signal potential challenges in the oil market.

The decline was further influenced by cautious supply expectations before an OPEC+ policy meeting. Brent crude fell to $82.66 a barrel, while West Texas Intermediate dropped to $ 77.95 a barrel.

These trends suggest that oil prices might continue to face downward pressure, particularly if OPEC+ extends its current production cuts. This situation could also affect natural gas markets, although specific impacts on natural gas prices were not detailed in the data provided.

Natural Gas Price Forecast

Natural Gas (NG) Price Chart

Natural Gas (NG) is trading at $2.326, slightly down by 0.09%. The pivotal point for today is set at $2.30, with immediate resistance levels at $2.34, $2.40, and $2.45. These figures suggest potential barriers to upward movement. Conversely, support is found at $2.24, with additional support levels at $2.19 and $2.15, crucial for preventing further declines.

The 50-day Exponential Moving Average (EMA) is currently at $2.23, supporting the notion of stability around the pivot point, while the 200-day EMA at $2.08 indicates a longer-term bullish trend. A sustained move above $2.30 could confirm bullish sentiment.

WTI Oil Price Forecast

WTI Price Chart

Today, USOIL is trading at $77.95, showing a decline of 0.47%. The market’s pivot point stands at $78.97, indicating a current bearish sentiment below this level. Key resistance levels are established at $79.85, $80.71, and $81.53, which could limit upward movements. Conversely, support levels are positioned at $77.56, $76.85, and $76.16, providing potential floors for price drops.

Technical indicators reinforce this view, with the 50-Day Exponential Moving Average (EMA) closely aligning with the pivot at $78.92, suggesting near-term price consolidation. The 200 EMA at $81.20 further highlights significant resistance. A move above $78.97 might shift the market to a bullish outlook, whereas continued trading below this pivot could intensify bearish trends.

Brent Oil Price Forecast

Brent Price Chart

UKOIL is currently priced at $82.66, marking a decrease of 0.33%. The pivot point for today is set at $82.23, below which the market shows a bearish bias. Resistance levels are at $83.85, $84.71, and $85.57, which could restrict upward price movements.

On the downside, immediate support can be found at $81.94, with further support at $81.08 and $80.32, potentially cushioning any declines.

The 50-Day Exponential Moving Average (EMA) stands at $83.73, slightly above the current price, while the 200 EMA at $85.95 suggests long-term resistance. A move above the pivot point could shift the outlook to bullish, while staying below might confirm a bearish trend.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Arslan Aliauthor

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.