Natural Gas and Oil Forecast: Oil Dips Over 3% as Middle East Tensions Ease

Arslan Ali
Updated: Apr 18, 2024, 10:31 GMT+00:00

Key Points:

  • Natural gas rises to $1.9520, a 1.72% increase, showing bullish trends above $1.91 pivot.
  • Brent crude stabilizes at $87.58 per barrel, amid easing Middle East conflict fears.
  • WTI crude slightly up at $82.32; watch critical pivot at $82.53 for market direction.
Energy Recap

In this article:

Market Overview

Oil prices have stabilized following a 3% decline, with Brent crude at $87.59 per barrel and West Texas Intermediate (WTI) at $82.32, as fears of a broader Middle East conflict lessen. The market is adjusting to lower than expected fuel demand and growing U.S. oil inventories, signaling a potential downturn in economic activity, particularly in China.

Meanwhile, natural gas forecasts are indirectly affected by these developments, given the interconnected nature of energy markets. The reduced likelihood of a severe escalation between Israel and Iran is alleviating concerns about supply disruptions from a key oil-producing region.

Analysts note that global oil consumption is trailing predictions, with a significant reduction in expected demand growth since the start of the year.

Natural Gas Price Forecast

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

Natural Gas (NG) prices today have climbed to $1.9520, marking an increase of 1.72%. The commodity is trading above its pivot point at $1.91, indicating a bullish stance in the short term. Resistance levels are mapped out at $1.99, $2.04, and $2.08.

Conversely, should downward pressure emerge, support can be found at $1.85, followed by $1.78 and $1.72. The technical setup is reinforced by the 50-day Exponential Moving Average (EMA) at $1.91 and the 200-day EMA closely aligned at $1.90, supporting the current price.

A move below $1.91 could trigger a significant sell-off, suggesting a critical watch point for traders.

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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