Natural Gas and Oil Forecast: Brent Stabilizes at $82.40, More Gains Ahead?

Market Overview

Oil prices steadied on Tuesday after declines in the previous two sessions, driven by investor caution regarding ample supplies and weak demand. The U.S. presidential campaign developments, including President Joe Biden’s withdrawal and endorsement of Kamala Harris, had minimal impact.

The market focus remained on fundamentals, with Citi analysts noting neither candidate would significantly affect oil and gas policies. Morgan Stanley projected a supply surplus by next year, potentially lowering Brent prices to the mid-to-high $70s per barrel.

Increased U.S. inventories and ongoing geopolitical tensions, such as the damage to Russia’s Tuapse oil refinery, continue to influence market dynamics.

Natural Gas Price Forecast

Natural Gas (NG) is trading at $2.242, up 0.35%. On the 2-hourly chart, the pivot point is set at $2.26. Immediate resistance levels are at $2.30, $2.35, and $2.41, indicating potential upward movement if these levels are surpassed.

On the downside, immediate support is found at $2.20, followed by $2.15 and $2.09, which is critical to watch if the price declines.

Technical indicators present a mixed outlook. The 50-day EMA is at $2.17, while the 200-day EMA stands at $2.31. These figures suggest a bearish outlook below the pivot point of $2.26. A break above this level could shift sentiment to a more bullish stance.

WTI Oil Price Forecast

USOIL is currently trading at $78.36, reflecting a modest increase of 0.22%. On the 2-hourly chart, the pivot point is set at $78.54, which is a crucial level for traders to watch. The immediate resistance levels are $79.11, $80.16, and $81.31. Breaking above these levels could indicate a continuation of the bullish trend.

On the downside, the immediate support level is at $77.69, followed by $76.88 and $76.21. If the price falls below the pivot point of $78.54, it could suggest a bearish trend, with these support levels coming into play.

Technical indicators also provide mixed signals. The 50-day Exponential Moving Average (EMA) is at $79.80, while the 200-day EMA stands at $81.08. In conclusion, USOIL’s outlook remains bearish below $78.54.

Brent Oil Price Forecast

Brent crude oil (UKOIL) is trading at $82.40, reflecting a slight increase of 0.18%. On the 2-hourly chart, the pivot point is set at $82.56. Immediate resistance levels are at $83.18, $83.88, and $84.78, indicating potential upward movement if these levels are breached.

On the downside, immediate support is found at $81.74, followed by $81.17 and $80.62, which are critical to watch if the price declines.

Technical indicators show mixed signals. The 50-day EMA is at $83.60, and the 200-day EMA stands at $84.55. These figures suggest a bearish outlook below the pivot point of $82.56. A break above this level could shift sentiment to a more bullish stance.