Market Overview
Crude oil futures remained stable on Friday but are on track for a second weekly gain due to rising demand and decreasing U.S. oil and fuel inventories. Prices have increased by 5% this month, reaching a seven-week high.
According to Citi analysts, seasonal demand, geopolitical tensions, and the hurricane season could maintain price strength. The Energy Information Administration (EIA) reported a drawdown in U.S. crude stockpiles by 2.5 million barrels, with gasoline inventories dropping by 2.3 million barrels.
Rising demand in Asia also supported prices. However, U.S. data showing fewer unemployment claims might keep interest rates unchanged, potentially limiting oil demand growth.
This bullish outlook for oil, supported by higher demand and lower inventories, signals potential price increases for both natural gas and oil, influenced by broader economic and geopolitical factors.
Natural Gas Price Forecast
Natural Gas (NG) is priced at $2.719, reflecting a 0.22% decline in the last two hours. The pivot point is at $2.715, marking a critical level. Immediate resistance is observed at $2.771, followed by $2.805 and $2.833.
Support levels are identified at $2.684, $2.651, and $2.613. Technical indicators reveal the 50-day EMA at $2.847 and the 200-day EMA at $2.811, indicating bearish momentum.
The bullish outlook hinges on maintaining above $2.715; a drop below this level could trigger substantial selling pressure.
WTI Oil Price Forecast
WTI crude oil (USOIL) is currently priced at $81.19, displaying a bullish sentiment. The pivot point at $81.09 serves as a critical marker. Immediate resistance is noted at $80.79, followed by $80.37 and $79.98.
On the support side, levels are positioned at $81.51, $81.91, and $82.22. Technical indicators highlight the 50-day EMA at $80.19 and the 200-day EMA at $78.50, suggesting upward momentum.
The bullish outlook is contingent on maintaining above $81.09; a break below this pivot could trigger a significant downward trend.
Brent Oil Price Forecast
Brent oil (UKOIL) is priced at $81.19, indicating a bullish trend. The pivot point stands at $85.49. Immediate resistance levels are set at $85.85, $86.13, and $86.47. On the downside, support levels are noted at $85.17, $84.92, and $84.65.
Technical indicators show the 50-day EMA at $84.52 and the 200-day EMA at $82.75, reinforcing the bullish outlook.
Holding above the $85.49 pivot point is crucial; a breach below this level may lead to significant selling pressure.
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