Natural Gas and Oil Forecast: NG Surges Past $2; Bull Run Ahead?

Market Overview

Oil prices declined in Asian trading on Wednesday due to mixed U.S. inventory data, ongoing fears of a slowing economy, and weak demand. The American Petroleum Institute (API) reported a smaller-than-expected rise in U.S. oil inventories, increasing by only 180,000 barrels compared to the anticipated 850,000 barrels.

However, gasoline and distillate inventories saw substantial increases, indicating a potential cooling of travel demand as summer ends. Concerns about a U.S. recession are further pressuring oil prices, which recently hit a seven-month low.

The geopolitical tension surrounding the Israel-Hamas conflict adds uncertainty, with fears of a broader Middle East war impacting both natural gas and oil forecasts.

Natural Gas Price Forecast

Natural Gas (NG) prices are currently at $2.034, showing a modest increase of 0.49%. The key pivot point is at $2.01, serving as a crucial indicator for future price movement. Immediate resistance is found at $2.09, with further resistance levels at $2.15 and $2.21.

Support is positioned at $1.96, $1.91, and $1.86, highlighting potential downside risks. The 50-day EMA stands at $2.03, with the 200-day EMA at $2.24.

The market outlook remains bullish above $2.01; however, a break below this pivot could signal a shift towards increased selling pressure and potential further declines.

WTI Oil Price Forecast

U.S. crude oil futures (USOIL) have seen a modest increase, with prices currently at $73.31, up 0.52%. The key pivot point stands at $73.61, suggesting that the market is at a critical juncture.

Immediate resistance is observed at $74.56, with subsequent resistance levels at $75.66 and $77.22. Support levels are positioned at $72.18, $70.93, and $70.08, indicating potential areas of downward pressure.

The 50-day EMA is at $74.28, while the 200-day EMA is at $77.04. The outlook remains bearish below $73.61, though a breach above this level could trigger a bullish trend.

Brent Oil Price Forecast

Brent crude (UKOIL) is currently trading at $76.57, reflecting a 0.71% increase. The key pivot point is positioned at $77.71, serving as a critical threshold for market direction.

Immediate resistance is identified at $79.10, with additional resistance levels at $80.45 and $81.81. Support levels are established at $74.99, $73.61, and $72.33, highlighting potential areas for downward movement.

The 50-day EMA is $78.73, while the 200-day EMA is $81.90. The current sentiment remains bearish below the pivot point of $77.71, though a breakout above this level may prompt a shift towards a more bullish outlook.