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 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.

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