Market Overview
Oil prices remained relatively stable in Asian trade on Friday, poised for a mildly positive week. The softer dollar, shrinking U.S. inventories, and increased Chinese stimulus boosted hopes for improved demand. However, the market faced mixed signals, as the International Energy Agency lowered its demand forecast for the year due to economic uncertainty, particularly concerning China, which faced higher U.S. trade tariffs.
Brent and WTI futures gained this week, driven by softer-than-expected U.S. inflation data. This data weakened the dollar and fueled expectations of Federal Reserve rate cuts by September. However, some Fed officials cautioned that more evidence of falling inflation is needed before trimming rates.
Impact on Natural Gas and Oil Forecast
The anticipation of looser monetary conditions supports crude demand. The upcoming $1 trillion bond issuance in China and data on industrial production and retail sales could further influence the world’s largest oil importer’s demand outlook. The Organization of Petroleum Exporting Countries (OPEC) is expected to maintain production cuts, presenting a tighter supply outlook.
Natural Gas Price Forecast
Natural Gas (NG) is trading at $2.50, up 0.34% today. The pivot point at $2.47 serves as a critical support level. Immediate resistance is at $2.56, followed by $2.63 and $2.72. On the downside, immediate support is at $2.39, with further support at $2.31 and $2.23.
Technical indicators show the 50-day EMA at $2.31 and the 200-day EMA at $2.05. The upward trendline supports NG near $2.47. Overall, NG remains bullish above $2.47, but a break below this level could trigger a sharp selling trend.
WTI Oil Price Forecast
USOIL is currently trading at $78.93, up 0.12% for the day. The pivot point at $78.67 serves as a critical support level. Immediate resistance is at $79.82, followed by $80.67 and $81.52. On the downside, immediate support is at $77.70, with further support at $76.65 and $75.77.
Technical indicators show the 50-day EMA at $78.97 and the 200-day EMA at $80.63. An upward trendline supports USOIL near $78.67. The closing of a doji candle above this pivot point suggests a potential buying trend.
Overall, USOIL remains bullish above $78.67, but a break below this level could trigger a sharp selling trend.
Brent Oil Price Forecast
UKOIL is trading at $83.49, up 0.13% for the day. The pivot point at $83.19 serves as a critical support level. Immediate resistance is at $84.51, followed by $85.82 and $86.82. On the downside, immediate support is at $82.15, with further support at $81.04 and $80.05.
Technical indicators show the 50-day EMA at $83.39 and the 200-day EMA at $85.15. An upward trendline supports UKOIL near $83.19. The closing of a doji candle above this pivot point suggests a potential buying trend.
Overall, UKOIL remains bullish above $83.19, but a break below this level could trigger a sharp selling trend.
For a look at all of today’s economic events, check out our economic calendar.
