Natural Gas and Oil Forecast: Prices Recover; Will the Uptrend Continue Today?

By:

Published: May 7, 2024, 05:50 GMT+00:00

Key Points:

Oil Prices React to Middle East Tensions: Israeli airstrikes in Rafah amid unresolved ceasefire talks spur oil market concerns.
U.S. Crude Inventory Watch: Anticipated stockpile decreases could further influence oil price trends this week.
Saudi Price Hike Signals Demand: Saudi Arabia's recent crude price adjustment suggests expectations of strong summer demand.

Natural Gas and Oil Forecast: Prices Recover; Will the Uptrend Continue Today?

Market Overview

Oil prices increased on Tuesday following Israeli airstrikes in Rafah, Gaza, amidst ongoing but unresolved ceasefire negotiations with Hamas. This escalation has heightened market apprehensions about prolonged geopolitical tensions, potentially impacting global oil supplies.

Upcoming U.S. crude inventory data is also in focus, with expectations of a decrease in stockpiles, further influencing oil forecasts.

Additionally, Saudi Arabia’s recent price hike for its crude oil indicates anticipated robust demand, supporting higher oil prices. These factors collectively signal potential upward pressure on oil prices if regional conflicts continue or escalate.

Natural Gas Price Forecast

Natural Gas (NG) Price Chart

Today’s session sees Natural Gas (NG) prices down by 1.22%, trading at $2.27. The commodity is slightly above its pivot point at $2.24, signalling a precarious position in the market. Resistance levels are poised at $2.30, $2.34, and $2.40, which NG must surpass to shift to a bullish stance.

On the downside, support is established at $2.19, with further cushions at $2.15 and $2.10, which could halt further declines. The 50-Day and 200-Day Exponential Moving Averages, at $2.18 and $2.05, respectively, indicate that prices have room to fluctuate within these bounds.

A decisive move above $2.30 would indicate a shift towards a bullish market while remaining below could confirm continued bearish trends.

WTI Oil Price Forecast

WTI Price Chart

Today’s technical analysis of USOIL shows a slight decline in price to $78.58, marking a 0.08% drop. Currently, the commodity is trading below the pivotal level of $79.97, indicating a bearish sentiment.

Immediate resistance levels are set at $79.86, followed by higher thresholds at $80.91 and $81.92, which could challenge upward movements. Support levels are found at $77.89, with further supports at $77.07 and $76.33, offering potential rebound points if declines continue.

The 50-day and 200-day Exponential Moving Averages at $80.37 and $81.81, respectively, suggest that the price is under pressure. A move above $79.95 could shift the outlook to be more bullish, while staying below may confirm the bearish trend.

Brent Oil Price Forecast

Brent Price Chart

Today’s technical outlook for UKOIL reveals a stable price at $83.41, with no significant change in the recent session. Oil is currently trading just above the pivotal mark at $83.32, which could act as a key juncture for future price movements. Resistance levels are noted at $84.44, $85.57, and $86.51, with each potentially capping upward trends.

Conversely, support is established at $82.72, with additional safety nets at $81.94 and $81.08, which might come into play if downward pressure persists. The 50-Day and 200-Day Exponential Moving Averages are set at $84.14 and $86.29, respectively, suggesting a potential resistance zone.

A move above $84.44 might tilt the bias toward a more bullish stance, whereas remaining below this level could sustain the bearish outlook.

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

About the Author

Arslan Aliauthor

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.