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Natural Gas and Oil Forecast: Drone Strikes Push Energy Prices; Buy Today?

By:
Arslan Ali
Updated: Mar 20, 2024, 09:53 GMT+00:00

Key Points:

  • Strengthening dollar dampens oil demand, with eyes on Fed's rate decision for future market direction.
  • Ukrainian drone strikes and OPEC+ cuts hint at tighter crude oil supplies, elevating Brent and WTI prices.
  • Natural Gas sees modest rise amid complex market dynamics, with technical indicators suggesting bullish sentiment.
Energy Recap

In this article:

Market Overview

Wednesday saw a sideways movement in oil prices, attributed to a stronger dollar and profit-taking after a recent rally. The rising U.S. dollar, marking its fifth consecutive session of gains, has made oil more expensive for holders of other currencies, thereby suppressing demand. Market eyes are on the Federal Reserve’s interest rate decision for further cues.

Crude oil supplies face potential constraints following Ukrainian drone strikes on Russian refineries, with Brent and WTI hitting their highest levels since late October. OPEC+’s continued production cuts into the second quarter of 2024 and possible supply reductions due to Russian export complications further underscore the tension.

These dynamics suggest a bullish outlook for refined products and potentially tighter markets for both oil and natural gas, as disruptions could force Russian producers to cut supply if export challenges persist.

Natural Gas Price Forecast

NG Price Chart
NG Price Chart

On March 20, Natural Gas (NG) experienced a modest increase, climbing 0.27% to trade at $1.8650. This slight uptick is situated within a complex market landscape, with the asset currently navigating around a pivot point of $1.8531.

The technical outlook delineates key resistance levels at $1.9011, $1.9426, and $1.9851, suggesting potential barriers to upward momentum. Conversely, support is established at $1.8093, $1.7761, and $1.7388, marking crucial points where further declines may be arrested.

The 50-Day and 200-Day Exponential Moving Averages, at $2 and $1.9198 respectively, indicate a bullish sentiment above the pivot.

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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