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Natural Gas and Oil Forecast: Middle East Tensions Underpin Energy Sector

By:
Arslan Ali
Updated: Apr 12, 2024, 11:09 GMT+00:00

Rising geopolitical tensions in the Middle East propel oil prices higher, despite underlying concerns of slower U.S. rate cuts impacting weekly trends.

Natural Gas and Oil Forecast: Middle East Tensions Underpin Energy Sector

In this article:

Market Overview

Oil prices increased on Friday due to rising tensions in the Middle East, potentially disrupting supply from the oil-rich region. Despite this uptick, oil is poised for a weekly decline influenced by the reduced likelihood of U.S. interest rate cuts this year.

The situation escalated following a suspected Israeli airstrike on Iran’s embassy in Damascus, with Iran vowing retaliation. Such geopolitical risks, alongside OPEC+’s supply cuts and improving global economic conditions, have significantly impacted oil price forecasts.

However, ongoing U.S. inflation concerns temper these gains, suggesting a cautious outlook for the oil market.

Natural Gas Price Forecast

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

Today’s analysis of Natural Gas (NG) reflects a decrease, with the price falling to $1.90, down by 0.52%. The pivot point stands at $1.89, critical for maintaining a bullish stance. Resistance levels are set at $1.95, $2.00, and $2.04, suggesting possible ceilings for upward movement.

On the downside, support is identified at $1.84, with additional layers at $1.78 and $1.72 that could arrest further declines. Both the 50-Day Exponential Moving Average at $1.94 and the 200-Day EMA at $1.89 underline this pivot, indicating potential price stability.

However, a break below $1.89 could lead to a sharp selling trend, warranting vigilant market monitoring.

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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