Natural Gas and Oil Forecast: Market Eyes $85 for USOIL Amid Global Unrest

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Updated: Apr 3, 2024, 10:19 GMT+00:00

Key Points:

Oil prices remain high amid Russian refinery attacks and potential Iran-Israel conflict escalation.
Geopolitical tensions drive oil's bullish trend, with markets watching Middle East closely.
Natural Gas prices react subtly, with $1.9240 pivot point crucial for upcoming market direction.

Natural Gas and Oil Forecast: Market Eyes $85 for USOIL Amid Global Unrest

Market Overview

Oil prices are stable but tense, reflecting concerns over supply disruptions from Russian refinery attacks and the escalating Israel-Hamas conflict, potentially involving Iran.

These geopolitical events have pushed oil to a five-month high, signaling a robust upward trend.

Natural Gas markets may also be affected as energy sector dynamics shift, with investors closely monitoring these developments for their potential impact on global energy supply and prices.

Natural Gas Price Forecast

Natural Gas

Natural Gas (NG) is currently priced at $1.9240, marking a modest increase of 0.31%. The market is hovering around the pivot point of $1.9218, indicating a critical juncture for future price direction. Resistance levels are spotted at $1.9396, $1.9720, and $2.0068, showcasing potential barriers for upward movement.

Conversely, support is established at $1.8797, $1.8503, and $1.8214, signifying thresholds for downward price action. With the 50-day EMA at $1.8599 and the 200-day EMA at $1.8350, NG exhibits a bullish trend within an upward trading channel.

A sustained move above $1.9218 would reinforce this bullish outlook, whereas a drop below could signal a shift to bearish momentum.

WTI Oil Price Forecast

WTI Price Chart

USOIL is currently priced at $85.08, reflecting a slight downtrend of 0.35%. The market is hovering around the pivot point of $85.01, which is crucial for the day’s trading strategy. Resistance levels are set at $86.10, $86.83, and $87.81, challenging the bullish momentum.

Conversely, support levels at $84.09, $82.98, and $81.84 provide downside protection. The 50 EMA at $82.74 and the 200 EMA at $79.99 underpin a bullish sentiment, indicating a potential for further gains above the $85.01 pivot, with a risk of a downturn if the price dips below this key level.

Brent Oil Price Forecast

Brent Price Chart

UKOIL is trading at $88.94, showing a slight decrease of 0.33%. Positioned near the pivot point of $88.75, it navigates through the day’s market fluctuations. The oil faces resistance at $89.35, $89.91, and $90.65, indicating possible price ceilings.

On the downside, support is observed at $88.08, $87.31, and $86.52, outlining areas where the price may stabilize. The 50-day and 200-day EMAs, at $87.40 and $85.58 respectively, coupled with an upward channel, suggest a bullish trend for UKOIL above $88.75. However, falling below this pivot could trigger a bearish shift in the market.

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

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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