Natural Gas and Oil Forecast: Bullish Trends as Oil Hits $85.80

Market Overview

Oil prices increased in Asian trade on Thursday, driven by a weaker dollar and unexpected U.S. oil inventory drawdowns. The dollar’s decline, spurred by anticipation of U.S. inflation data and potential interest rate cuts, made oil cheaper for international buyers.

Federal Reserve Chair Jerome Powell’s comments on a soft economic landing and potential rate cuts further weakened the dollar. Despite a rise in distillate inventories, traders remained optimistic about tighter U.S. markets due to summer travel and potential disruptions from hurricane Beryl.

OPEC maintained its forecast for strong global oil demand growth, while the International Energy Agency’s report is awaited.

Natural Gas Price Forecast

Natural Gas (NG) is trading at $2.334, up 0.43% in the latest session. The four-hour chart highlights key levels to watch. The pivot point is $2.35, a critical level for future price movements. Immediate resistance is set at $2.39, with further resistance at $2.45 and $2.48. On the downside, immediate support is at $2.29, followed by $2.25 and $2.22.

Technical indicators suggest a bearish outlook below the pivot point, with the 50-day Exponential Moving Average (EMA) at $2.37 and the 200-day EMA at $2.53. If prices break above $2.35, the trend may turn bullish. However, staying below this level reinforces the bearish bias.

WTI Oil Price Forecast

The USOIL prices are trading at $82.75, up 0.41% in the latest session. The pivot point stands at $82.37, serving as a critical marker for future movements. Immediate resistance is at $82.98, followed by $83.63 and $84.52, which could act as further resistance levels if the price continues to rise. On the downside, immediate support is found at $81.72, with additional support levels at $80.78 and $80.15.

The technical indicators highlight a bullish trend, with the 50-day Exponential Moving Average (EMA) at $82.29 and the 200-day EMA at $81.62. The current price above these averages suggests ongoing upward momentum. However, a break below the pivot point at $82.37 could shift the trend, potentially leading to a sharp sell-off.

Brent Oil Price Forecast

UKOIL is trading at $85.79, up 0.43% in the latest session. The four-hour chart identifies key price levels: the pivot point is $85.23, acting as a crucial support level. Immediate resistance is noted at $86.29, with subsequent resistance at $86.88 and $87.65. On the downside, immediate support is found at $84.14, followed by $83.51 and $82.72.

Technical indicators show a bullish trend, with the 50-day Exponential Moving Average (EMA) at $85.59 and the 200-day EMA at $85.10. The price staying above these levels confirms upward momentum. However, a break below the pivot point at $85.23 could trigger significant selling pressure. For now, the bullish trend remains intact above this pivot level.