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Natural Gas and Oil Forecast: Bullish Trends as Oil Hits $85.80

By:
Arslan Ali
Updated: Jul 11, 2024, 10:54 GMT+00:00

Key Points:

  • Oil prices rise on weak dollar and lower U.S. oil inventories.
  • Jerome Powell's comments on rate cuts weaken the dollar further.
  • OPEC maintains strong global oil demand growth forecast.
Natural Gas and Oil Forecast: Bullish Trends as Oil Hits $85.80

In this article:

Market Overview

Oil prices increased in Asian trade on Thursday, driven by a weaker dollar and unexpected U.S. oil inventory drawdowns. The dollar’s decline, spurred by anticipation of U.S. inflation data and potential interest rate cuts, made oil cheaper for international buyers.

Federal Reserve Chair Jerome Powell’s comments on a soft economic landing and potential rate cuts further weakened the dollar. Despite a rise in distillate inventories, traders remained optimistic about tighter U.S. markets due to summer travel and potential disruptions from hurricane Beryl.

OPEC maintained its forecast for strong global oil demand growth, while the International Energy Agency’s report is awaited.

Natural Gas Price Forecast

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

The USOIL prices are trading at $82.75, up 0.41% in the latest session. The pivot point stands at $82.37, serving as a critical marker for future movements. Immediate resistance is at $82.98, followed by $83.63 and $84.52, which could act as further resistance levels if the price continues to rise. On the downside, immediate support is found at $81.72, with additional support levels at $80.78 and $80.15.

The technical indicators highlight a bullish trend, with the 50-day Exponential Moving Average (EMA) at $82.29 and the 200-day EMA at $81.62. The current price above these averages suggests ongoing upward momentum. However, a break below the pivot point at $82.37 could shift the trend, potentially leading to a sharp sell-off.

Brent Oil Price Forecast

Brent Price Chart
Brent Price Chart

UKOIL is trading at $85.79, up 0.43% in the latest session. The four-hour chart identifies key price levels: the pivot point is $85.23, acting as a crucial support level. Immediate resistance is noted at $86.29, with subsequent resistance at $86.88 and $87.65. On the downside, immediate support is found at $84.14, followed by $83.51 and $82.72.

Technical indicators show a bullish trend, with the 50-day Exponential Moving Average (EMA) at $85.59 and the 200-day EMA at $85.10. The price staying above these levels confirms upward momentum. However, a break below the pivot point at $85.23 could trigger significant selling pressure. For now, the bullish trend remains intact above this pivot level.

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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