Oil prices remained mostly stable on Thursday as markets awaited U.S. crude oil stockpiles data, despite resilient U.S. economic activity suggesting higher borrowing costs for a longer period, potentially impacting demand.
The American Petroleum Institute (API) reported a significant drop in crude inventories by 6.49 million barrels, with gasoline down by 452,000 barrels and distillates up by 2.045 million barrels.
This larger-than-expected drawdown could have supported prices, but broader risk-off sentiment exerted downward pressure. Upcoming data from the U.S. Energy Information Administration (EIA) and the OPEC+ meeting on June 2 will be crucial in shaping oil and natural gas forecasts.
Natural Gas Price Forecast
Natural Gas (NG) Price Chart
Natural Gas (NG) is trading at $2.65, down 0.08%. The pivot point at $2.72 is crucial for determining market direction. Immediate resistance levels are $2.85, $2.93, and $3.03. On the downside, immediate support is at $2.61, followed by $2.48 and $2.39.
Technical indicators show the 50-day Exponential Moving Average (EMA) at $2.61 and the 200-day EMA at $2.30. These indicators suggest potential support and resistance levels that traders should monitor.
The outlook remains bearish below $2.72. A break above this level could boost bullish momentum, while a sustained drop below may lead to further declines.
WTI Oil Price Forecast
WTI Price Chart
USOIL is currently trading at $79.06, experiencing a slight decline of 0.14%. The pivot point at $79.41 is a critical level for market direction. Immediate resistance levels are at $80.60, $81.53, and $82.74. On the downside, support levels are $78.46, $77.33, and $76.23.
Technical indicators show the 50-day Exponential Moving Average (EMA) at $78.73 and the 200-day EMA at $79.76. The Relative Strength Index (RSI) will be monitored closely for momentum insights.
The outlook is bearish below $79.41. A break above this level could shift the bias towards a more bullish trend.
Brent Oil Price Forecast
Brent Price Chart
UKOIL is trading at $83.20, slightly down by 0.04%. The pivot point is at $83.09, indicating a crucial level for market direction. Immediate resistance levels are $84.66, $85.55, and $86.54. On the downside, immediate support is at $82.00, followed by $80.65 and $79.76.
Technical indicators reveal the 50-day Exponential Moving Average (EMA) at $83.00 and the 200-day EMA at $84.20. Monitoring the Relative Strength Index (RSI) will provide further insights into market momentum.
The outlook remains bullish above $83.00. A break below this level could trigger a sharp selling trend.
For a look at all of today’s economic events, check out our economic calendar.
Arslan is a finance MBA and also holds an MPhil degree in behavioral finance. An expert in financial analysis and investor psychology, Arslan uses his academic background to bring valuable insights about market sentiment and whether instruments are likely to be overbought or oversold.
