Natural Gas and Oil Forecast: USOIL Eyes $80 Resistance Amid Rally

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Updated: May 3, 2024, 10:27 GMT+00:00

Key Points:

OPEC+ Output Cuts: Oil prices rise modestly; weekly outlook remains bearish amid demand uncertainties.
Federal Reserve Rates: Steady interest rates amidst high inflation influence cautious market sentiment.
USOIL Pivot Point: Slight uptick suggests potential shift; key resistance and support levels in focus.

Natural Gas and Oil Forecast: USOIL Eyes $80 Resistance Amid Rally

Market Overview

Oil prices saw a modest rise due to OPEC+’s potential extension of output cuts. However, the market is poised for significant weekly declines, influenced by demand uncertainties and reduced Middle Eastern tensions.

The U.S. Federal Reserve’s steady interest rates amidst high inflation and the possible easing of geopolitical risks with a ceasefire between Israel and Hamas contribute to the market’s cautious stance.

Upcoming U.S. labor data and crude supply indicators could further impact oil forecasts, as the market anticipates OPEC+’s next moves and assesses the implications of sustained higher interest rates on global demand.

Natural Gas Price Forecast

Natural Gas (NG) Price Chart

Natural Gas (NG) is currently priced at $2.09, reflecting a minor decline of 0.43%. The market’s technical posture is defined by a pivot point at $2.06. Should NG maintain above this level, it could encounter resistance at $2.15, $2.19, and $2.23. A breach of the pivot point, however, may lead to testing support at $2.00, $1.96, and $1.92.

The 50-day and 200-day Exponential Moving Averages (EMAs) at $2.05 and $2.00, respectively, underscore the pivot’s significance. The current sentiment is bullish above $2.06, but a downturn below this threshold could intensify selling pressure.

WTI Oil Price Forecast

WTI Price Chart

USOIL‘s modest uptick to $79.18 reflects a market teetering on the brink of a directional shift. The pivot point at $78.93 is pivotal; a foothold above could propel prices towards resistance levels at $79.90, $80.92, and $82.03.

Conversely, slipping below could see support levels at $78.15, $77.28, and $76.53 come into play. The 50-day EMA at $86.55 and the 200-day EMA at $82.38 loom overhead, suggesting the path of least resistance may be lower.

The current stance is bearish, below $79.90, but breaching this could invigorate bulls, potentially reshaping the trend.

Brent Oil Price Forecast

Brent Price Chart

UKOIL‘s market stance is currently trading at $83.91, a fractional decline of 0.24%. The pivot point at $83.73 serves as the fulcrum for potential price swings. A secure position above this green line could see the commodity challenge resistance levels at $84.44, $85.43, and $86.51.

Should it falter, support awaits at $83.01, $81.94, and $81.08. The 50-day and 200-day EMAs, at $85.25 and $87.04, respectively, loom as distant beacons of bullish territory. Currently, the trend is bullish above the pivot; however, a descent below could trigger a sharp sell-off.

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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.