Market Overview
Oil prices remained stable on Wednesday as the market balanced concerns over rising conflicts in Europe and the Middle East with demand worries from an unexpected rise in U.S. crude inventories.
Both benchmarks gained over $1 in the previous session after a Ukrainian drone strike caused a fire at a major Russian port oil terminal. In the Middle East, tensions escalated with Israel’s warning of an imminent “all out war” with Lebanon’s Hezbollah, raising fears of disrupted crude supply from key producers.
Analysts noted that geopolitical tensions could support oil prices despite weaker U.S. retail sales and mixed Chinese economic data.
U.S. crude inventories increased by 2.264 million barrels, contrary to expectations of a 2.2 million barrel draw, potentially capping further oil price gains. Federal Reserve rate cut expectations, driven by mixed U.S. economic indicators, might spur economic activity and lift oil consumption, impacting both oil and natural gas forecasts.
Natural Gas Price Forecast
Natural Gas (NG) is currently trading at $2.9900, up 0.71%. The pivot point at $2.905 is crucial for determining the next move. Immediate resistance is noted at $2.955, followed by $2.989 and $3.022.
On the downside, immediate support is found at $2.868, with further support at $2.833 and $2.790. The 50-day Exponential Moving Average (EMA) stands at $2.886, while the 200-day EMA is at $2.805. The overall outlook remains bullish above $2.905, but a break below this level could trigger a sharp selling trend.
WTI Oil Price Forecast
USOIL is currently trading at $80.72, showing a slight increase of 0.01%. The pivot point at $80.84 is crucial for determining the next move. Immediate resistance is seen at $81.19, followed by $81.55 and $81.91. On the downside, immediate support is found at $80.37, with further support at $79.98 and $79.50.
The 50-day Exponential Moving Average (EMA) is at $79.14, and the 200-day EMA is at $77.90. The outlook is bearish below $80.84, but a break above this level could enhance bullish momentum.
Brent Oil Price Forecast
UKOIL is currently trading at $85.34, up 0.08%. The pivot point at $85.46 is critical for determining the next move. Immediate resistance is at $85.93, followed by $86.33 and $86.76.
On the downside, immediate support is found at $84.93, with further support at $84.58 and $84.06. The 50-day Exponential Moving Average (EMA) is at $83.43, while the 200-day EMA is at $82.17.
The outlook remains bearish below $85.46, but a break above this level could enhance bullish momentum.
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