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Natural Gas, WTI Oil, Brent Oil Forecasts – Nat Gas Futures Under Pressure from Rising Production Estimates

By:
James Hyerczyk
Published: Jun 25, 2024, 17:51 GMT+00:00

Key Points:

  • July natural gas futures struggle due to increased Lower 48 production estimates, affecting market sentiment.
  • WTI crude prices face pressure with Federal Reserve holding rates steady to control inflation, impacting fuel demand.
  • Brent crude prices steady as the market anticipates the PCE index release for clues on future rate cuts.
Natural Gas, WTI Oil, Brent Oil Forecasts

Natural Gas

Daily Natural Gas

July natural gas futures faced pressure from rising Lower 48 production estimates ahead of Wednesday’s expiration. Analysts anticipated struggles for July, while bulls hoped weather factors would boost August futures past resistance levels. Tuesday’s early trading saw July futures continuing to decline.

Natural Gas Futures are consolidating between resistance at $2.794-$2.850 and support at $2.500-$2.551. The price is near the 50-day SMA at $2.407, with the RSI at a neutral 52.68, indicating no strong momentum. Watch for breakout or breakdown to determine the next move.

WTI Oil

Daily WTI Oil (USOIL)

WTI crude oil prices face pressure as the U.S. Federal Reserve maintains its stance on holding the policy rate steady to control inflation. This delay in rate cuts could hinder economic growth and limit fuel consumption, particularly as the summer driving season approaches, potentially impacting gasoline demand. Investors are closely monitoring Friday’s release of the personal consumption expenditures (PCE) index, the Fed’s preferred inflation measure, for insights into future rate decisions. This data will provide a clearer indication of how long the central bank might wait before reducing interest rates, influencing market expectations and WTI crude prices.

The WTI crude oil daily chart shows prices at $80.94, with resistance areas between $83.53 and $84.52, and support areas between $80.03 and $79.06. The 50-day SMA at $79.21 indicates a bullish trend. The RSI at 58.18 suggests moderate buying strength.

Brent Oil

Daily Brent (UKOIL)

Brent crude oil prices are influenced by the U.S. Federal Reserve’s decision to keep the policy rate steady. The expectation that this approach will control inflation suggests that a delay in rate cuts may impact global economic growth and fuel consumption.

Market participants are particularly attentive to the upcoming release of the PCE index for guidance on the Fed’s timeline for interest rate adjustments. This inflation measure is crucial in determining how long the central bank may wait before implementing rate cuts, affecting Brent crude oil demand and prices in the international market. As summer approaches, gasoline consumption trends will also play a significant role in shaping demand.

Brent Crude Oil is consolidating between resistance at $84.45-$85.01 and support at $80.00-$81.07. The price hovers near the 50-day SMA, with RSI neutral. Watch for breakout or breakdown to determine next major move.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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