Natural Gas and Oil Forecast: Energy Rises Amid OPEC+ Cuts; Bearish Correction Coming?

By:

Arslan Ali

Updated: May 29, 2024, 10:21 GMT+00:00

Key Points:

Oil prices rose in Asia on expectations of sustained OPEC+ production cuts.
OPEC+ likely to maintain cuts of 2.2 million barrels/day to stabilize oil prices.
U.S. summer driving season boosts crude demand, supporting higher oil prices.

In this article:

Natural Gas

+2.15%

WTI Oil

-1.61%

Brent Oil

-1.31%

Market Overview

Oil prices increased in Asian trading on Wednesday, driven by expectations that major producers will maintain output cuts during their upcoming meeting and the seasonal rise in fuel consumption with the start of summer.

Analysts predict that OPEC+ will keep voluntary production cuts of around 2.2 million barrels per day, aiming to stabilize prices and balance the global oil market.

This move, coupled with increased summer driving season demand in the U.S., supports higher crude prices.

Natural Gas Price Forecast

Natural Gas (NG) Price Chart

Natural Gas (NG) is trading at $2.83, down 0.56% on the 4-hour chart. The pivot point at $2.80 is critical for determining market direction. Immediate resistance levels are $2.93, $3.03, and $3.13.

On the downside, immediate support is found at $2.71, followed by $2.62 and $2.48. The 50-day Exponential Moving Average (EMA) is at $2.59, while the 200-day EMA stands at $2.28.

The current setup suggests bullish sentiment above $2.80, but a break below this level could trigger a sharp selling trend.

WTI Oil Price Forecast

WTI Price Chart

USOIL is trading at $80.11, reflecting a slight decline of 0.20% on the 4-hour chart. The pivot point at $79.78 is crucial for determining market direction. Immediate resistance levels are at $80.90, $81.98, and $83.28.

On the downside, immediate support is found at $78.96, followed by $77.77 and $76.23. The 50-day Exponential Moving Average (EMA) is positioned at $78.53, while the 200-day EMA aligns with the pivot point at $79.78.

The current technical setup indicates a bearish sentiment below $78.96, but a break above this level could boost bullish momentum.

Brent Oil Price Forecast

Brent Price Chart

UKOIL is trading at $84.15, reflecting a slight decline of 0.19% on the 4-hour chart. The pivot point at $84.44 is crucial for determining market direction. Immediate resistance levels are at $85.32, $86.02, and $86.81.

On the downside, immediate support is found at $83.08, followed by $82.00 and $80.65. The 50-day Exponential Moving Average (EMA) is positioned at $82.83, while the 200-day EMA stands at $84.24.

The current technical setup indicates a bearish sentiment below $84.44. However, a break above this level could enhance bullish momentum, shifting the market outlook.

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About the Author

Arslan Aliauthor

Arslan is a finance MBA and also holds an MPhil degree in behavioral finance. An expert in financial analysis and investor psychology, Arslan uses his academic background to bring valuable insights about market sentiment and whether instruments are likely to be overbought or oversold.

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