Natural Gas and Oil Forecast: Strong U.S. Fuel Demand, Oil Up Over 0.25%

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Updated: May 28, 2024, 09:44 GMT+00:00

Key Points:

Oil prices increased in Asian trade, driven by strong U.S. summer fuel demand expectations.
U.S. summer driving season and real-time mobility data indicate robust oil demand, supporting prices.
Potential OPEC+ output cuts extension and a weaker U.S. dollar boost positive oil outlook.

Natural Gas and Oil Forecast: Strong U.S. Fuel Demand, Oil Up Over 0.25%

Market Overview

Oil prices increased in Asian trade on Tuesday, continuing gains from Monday, driven by expectations of strong U.S. fuel demand during the summer and the upcoming OPEC+ meeting on June 2. Oil prices rose over 1% on Monday, despite subdued trading due to holidays in the U.S. and Britain.

Rising air travel further supports this trend. Meanwhile, the potential extension of OPEC+ output cuts and a weaker U.S. dollar contribute to a positive oil and natural gas outlook.

Natural Gas Price Forecast

Natural Gas (NG) Price Chart

Natural Gas (NG) is trading at $2.50, down 0.98% on the 4-hour chart. The pivot point, marked at $2.58, is critical for determining market direction. Immediate resistance levels are at $2.67, $2.77, and $2.86. On the downside, immediate support is at $2.47, followed by $2.39 and $2.31.

The 50-day Exponential Moving Average (EMA) is positioned at $2.57, indicating potential short-term resistance, while the 200-day EMA is at $2.25, suggesting stronger support. The outlook remains bearish below $2.58, with a break above this level potentially shifting sentiment to a more bullish stance.

WTI Oil Price Forecast

WTI Price Chart

USOIL is trading at $78.81, reflecting a 0.39% increase on the 4-hour chart. The pivot point, marked by the green line at $78.43, is crucial for determining market direction. Immediate resistance levels are $79.56, $80.38, and $81.22. On the downside, immediate support is identified at $77.56, followed by $76.97 and $76.15.

The 50-day Exponential Moving Average (EMA) is at $78.21, indicating short-term bullish momentum. The 200-day EMA is at $79.78, providing long-term resistance. Maintaining a bullish outlook above $78.43 is recommended, with a break below this level potentially triggering a sharp selling trend.

Brent Oil Price Forecast

Brent Price Chart

UKOIL is trading at $82.97, reflecting a 0.28% increase on the 4-hour chart. The pivot point, marked by the green line at $82.76, is essential for determining market direction. Immediate resistance levels are $83.74, $84.41, and $85.32. On the downside, immediate support is found at $82.04, followed by $81.32 and $80.65.

The 50-day Exponential Moving Average (EMA) is at $82.58, indicating short-term bullish momentum, while the 200-day EMA is at $84.27, acting as long-term resistance. Maintaining a bullish outlook above $82.76 is recommended, with a break below this level potentially triggering a sharp selling trend.

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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.