Natural Gas and Oil Forecast: $2.16 Key Pivot for NG; Oil Eyes $69.50 Support

Market Overview

Oil prices extended losses, falling over 4% this week due to expectations of a resolution to Libya’s political dispute that has severely impacted exports. The potential recovery of Libyan supply, combined with concerns over weaker global demand growth, especially from the U.S. and China, has pressured oil prices further.

Weak U.S. manufacturing data and slower economic activity in China add to fears of declining fuel demand. This negative sentiment also affects natural gas and oil forecasts, suggesting a bearish outlook as economic uncertainty and easing geopolitical tensions lower the prospects for demand growth.

Natural Gas Price Forecast

Natural Gas (NG) is consolidating around $2.20, as the market seeks direction. The price is hovering near the key pivot point of $2.16, with immediate resistance at $2.22, and further resistance levels at $2.26 and $2.30.

On the downside, support can be found at $2.13, followed by $2.08 and $2.04. The 50-day EMA is holding at $2.15, while the 200-day EMA sits slightly lower at $2.12, both acting as dynamic supports.

Technically, NG remains bullish as long as prices stay above $2.16. However, a break below this pivot level could trigger sharp selling pressure.

WTI Oil Price Forecast

USOIL is hovering at $69.86, down slightly by 0.38%, and traders are watching key support and resistance levels to gauge the next move. The pivot point currently sits at $71.48, acting as a strong bearish threshold. If prices break below the immediate support at $67.81, the next targets could be $65.85 and $63.77.

On the flip side, any upward correction could meet resistance at $74.17, with further obstacles at $75.51 and $77.63. The 50-day EMA at $73.80 and 200-day EMA at $75.88 indicate that the bearish trend remains intact unless oil can breach $71.48. However, we could see a short-term bounce from the $69.50 support level today.

Brent Oil Price Forecast

UKOIL is currently trading at $73.32, down 0.49%, as it moves slightly below the pivot point of $73.14. The immediate resistance stands at $74.18, with further resistance levels at $74.81 and $75.31.

If the price manages to hold above $73.14, the outlook remains bullish, but any slip below this pivot could push UKOIL towards immediate support at $72.38. Further downside could target $71.54 and $70.81.

The 50-day EMA at $77.32 and 200-day EMA at $79.41 show that UKOIL is trading below key moving averages, suggesting a bearish momentum in the longer term. However, if the price bounces from current levels, it could attempt to retest higher resistance.