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Natural Gas and Oil Forecast: Brent Holds Near $90, NG Eyes $2

By:
Arslan Ali
Updated: Apr 15, 2024, 09:46 GMT+00:00

Key Points:

  • Oil prices dipped post-Iran's limited-damage attack on Israel; Brent at $90, WTI at $85.
  • Natural Gas shows cautious optimism, holding above pivot at $1.89 with potential resistance at $2.04.
  • UKOIL remains mildly bullish, watching pivotal $89.76 with resistance potentially reaching $92.89.
Natural Gas and Oil Forecast: Brent Holds Near $90, NG Eyes $2

In this article:

Market Overview

Following Iran’s attack on Israel, which resulted in limited damage, oil prices dropped slightly with Brent futures falling near $90 and WTI to $85. This decrease reflects a reduction in the risk premium that had increased in anticipation of the attack. .

Despite concerns of a wider conflict potentially disrupting oil flow through the Middle East, the immediate impact on oil supply has been minimal. Analysts suggest that any significant disruption could lead to the U.S. releasing more crude from its reserves and OPEC potentially utilizing its spare capacity to stabilize markets.

The situation remains fluid, with future oil and natural gas prices heavily dependent on further geopolitical developments and Israel’s subsequent actions.

Natural Gas Price Forecast

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

Natural Gas (NG) prices edged up to $1.94, marking a 0.31% increase. On the four-hour chart, the pivot point stands at $1.89, suggesting a cautiously bullish sentiment above this level. Resistance is mapped at $1.95, followed by psychological barriers at $2.00 and $2.04, which could cap further advances.

Support levels are positioned at $1.84, $1.78, and $1.72, with a break below the pivot potentially triggering a sharp decline. The 50-day Exponential Moving Average (EMA) at $1.92 and the 200-day EMA at $1.90 lend additional support, reinforcing the pivot point’s significance.

Overall, Natural Gas is poised for potential gains while remaining above $1.89, but risks of downside movement persist if it falls below this critical threshold.

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.

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