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Natural Gas and Oil Forecast: Oil Sees 7-Week High, Gasoline Down 2.3M Barrels

By:
Arslan Ali
Updated: Jun 21, 2024, 10:46 GMT+00:00

Key Points:

  • Crude oil futures set to rise for the second week on improving U.S. demand.
  • U.S. demand rose by 1.9 million bpd to 21.1 million bpd, EIA reports.
  • U.S. crude stockpiles dropped by 2.5 million barrels to 457.1 million barrels last week.
Natural Gas and Oil Forecast: Oil Sees 7-Week High, Gasoline Down 2.3M Barrels

In this article:

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.

WTI Oil Price Forecast

WTI Price Chart
WTI Price Chart

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 Price Chart
Brent Price Chart

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.

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

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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