Natural Gas and Oil Forecast: Upward Trendline to Drive Buying in Energy Sector?

Arslan Ali
Updated: Apr 17, 2024, 10:04 GMT+00:00

Key Points:

  • Early Wednesday trading shows oil prices down due to weak demand signals from China and rising U.S. stockpiles.
  • Middle East conflicts, particularly Iran's actions, have yet to significantly disrupt global oil prices.
  • Mixed economic data from China in March underlines continuing weak domestic demand, casting a shadow on energy forecasts.
Energy Recap

In this article:

Market Overview

Oil prices declined in early trading on Wednesday, influenced by concerns over global demand triggered by economic stagnation in China and a potential increase in U.S. commercial oil stockpiles. Despite geopolitical tensions in the Middle East following Iran’s attack on Israel, the anticipated response has not escalated oil prices as expected.

Market analysts suggest that the situation might remain contained, with possible intervention from major oil producers like Saudi Arabia to stabilize global supply. In the U.S., an unexpected rise in crude inventories further pressured oil prices, reflecting broader economic uncertainties.

Meanwhile, China’s mixed economic indicators for March, showing weak domestic demand, add to the complexities affecting the oil and natural gas forecast, indicating a bearish outlook for energy prices in the near term.

Natural Gas Price Forecast

Natural Gas (NG) Price Chart
Natural Gas (NG) Price Chart

On April 17, Natural Gas (NG) saw its price increase to $1.89, up by 0.80%. Currently trading just above its pivot point at $1.85, NG faces resistance levels at $1.94, $1.99, and $2.04. Surpassing these marks could reinforce a bullish outlook.

Conversely, if NG dips below its pivot, support might be found at $1.78, $1.72, and $1.68, where a breakdown could trigger a steeper selling trend. The 50-day Exponential Moving Average (EMA) at $1.91 and the 200-day EMA at $1.90 suggest that prices are hovering near a critical junction.

Staying above $1.85 is pivotal to maintain the current upward trajectory.

WTI Oil Price Forecast

WTI Price Chart
WTI Price Chart

About the Author

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.

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