Natural Gas and Oil Forecast: WTI Surges Past $75 – More Gains or Sell Now?

Market Overview

Oil prices climbed in Asian trade on Thursday due to a significant drop in U.S. inventories, which raised hopes for sustained demand in the world’s largest fuel consumer. Bargain buying helped oil prices rebound from multi-month lows, but the rally is losing momentum.

Negative economic data from China, particularly regarding crude imports, has stymied further gains. Both oil contracts have faced sharp losses recently due to fears of a potential U.S. recession impacting demand.

The Energy Information Administration reported a record high U.S. oil production, but lower global demand growth is anticipated. Weak Chinese import data and growth concerns continue to pressure prices.

This trend impacts the Natural Gas and Oil Forecast by suggesting that while there is temporary optimism due to lower U.S. inventories, overall market sentiment remains cautious due to weak demand signals from major economies like the U.S. and China.

Natural Gas Price Forecast

Natural Gas (NG) is trading at $2.09, up 0.49%. The 4-hour chart shows a pivotal point at $2.10. Immediate resistance levels are at $2.15, followed by $2.21 and $2.26. On the downside, immediate support is at $2.02, with further support at $1.96 and $1.88.

The 50-day EMA is positioned at $2.04, while the 200-day EMA is at $2.23, reflecting a bearish trend below the pivot. A break above $2.10 could indicate a bullish reversal, whereas staying below suggests continued bearish pressure.

WTI Oil Price Forecast

U.S. crude oil futures (USOIL) is trading at $75.38, up 0.52%. The 4-hour chart highlights a pivotal point at $75.62. Immediate resistance levels are at $76.48, followed by $77.59 and $78.80. On the downside, immediate support is at $74.21, with further support at $72.92 and $71.66.

The 50-day EMA is at $75.33, while the 200-day EMA is at $78.18, indicating a bearish trend below the pivotal point. A break above $75.62 could shift the bias to bullish while remaining below this level suggests continued bearish pressure.

Brent Oil Price Forecast

Brent crude (UKOIL) is trading at $78.39, up 0.71%. The 4-hour chart highlights a pivotal point at $78.63. Immediate resistance levels are at $79.39, followed by $80.45 and $81.60. On the downside, immediate support is at $77.22, with further support at $75.98 and $74.99.

The 50-day EMA stands at $78.60, while the 200-day EMA is at $81.67, indicating bearish momentum below the pivot. A break above $78.63 could signal a bullish shift, whereas staying below suggests continued bearish pressure.