Market Overview
Oil prices increased in Asian trade on Wednesday due to a larger-than-expected drop in U.S. inventories and growing expectations of tighter supplies. Data from the American Petroleum Institute (API) revealed a 3.1 million barrel reduction in U.S. oil inventories for the week ending May 10, surpassing the forecasted 1.1 million barrel draw.
Additionally, Federal Reserve Chair Jerome Powell’s remarks on the resilience of the U.S. economy and China’s plans for a significant bond issuance supported market sentiment.
However, gains were tempered by hotter-than-expected U.S. producer price index (PPI) inflation data, raising concerns over upcoming consumer price index (CPI) figures and their impact on Federal Reserve policies.
Natural Gas Price Forecast
Natural Gas (NG) is trading at $2.47, up 0.12%. The 4-hour chart identifies key price levels with a pivot point at $2.32. Immediate resistance is at $2.40, with further resistance levels at $2.45 and $2.51. On the downside, immediate support is at $2.28, followed by $2.22 and $2.15. The 50-day EMA is at $2.23, while the 200-day EMA stands at $2.00.
Technical indicators suggest a mixed outlook. The Relative Strength Index (RSI) is currently neutral. The price action below the pivot point of $2.32 indicates a bearish trend. However, if NG breaks above $2.32, it could boost bullish sentiment and potentially lead to higher levels.
WTI Oil Price Forecast
USOIL is trading at $78.49, up 0.15%. On the 4-hour chart, the pivot point is at $78.76. Immediate resistance levels are at $79.28, $80.37, and $81.37. Immediate support is at $77.73, with further support at $76.85 and $75.83. The 50-day EMA is at $79.14, and the 200-day EMA is at $80.89.
Technical indicators suggest a cautious outlook. USOIL remains bearish below the pivot point of $78.76. A break above this level could signal a shift to a bullish trend, targeting the immediate resistance levels. Conversely, a drop below $78.76 may reinforce the bearish sentiment.
Brent Oil Price Forecast
UKOIL is trading at $82.82, up 0.12%. The 4-hour chart shows a pivot point at $83.12. Immediate resistance levels are at $84.44, $85.57, and $86.79. On the downside, immediate support is at $82.08, followed by $80.99 and $79.65. The 50-day EMA is at $83.64, while the 200-day EMA is at $85.44.
Technical indicators suggest a cautious stance. UKOIL remains bearish below the pivot point of $83.12. A break above this level could signal a shift to a bullish trend, targeting the immediate resistance levels. Conversely, a drop below $83.12 may reinforce the bearish outlook.
For a look at all of today’s economic events, check out our economic calendar.
