Natural Gas and Oil Forecast: Can Oil Prices Break $74.25 Amid Market Uncertainty?

Market Overview

Oil prices fell on Wednesday, poised to end a two-session rally as markets anticipated an upcoming U.S. Federal Reserve rate cut, potentially boosting fuel demand and weakening the dollar. However, geopolitical tensions in the Middle East, with potential supply disruptions, offered some price support.

In addition, the market expects a decline in U.S. crude inventories by around 500,000 barrels, which could also buoy prices. Natural gas, meanwhile, could face volatility as oil forecasts remain uncertain.

Rate cuts and geopolitical risks both play significant roles in shaping short-term energy market forecasts for both oil and natural gas.

Natural Gas Price Forecast

Natural Gas (NG) is trading at $2.322, up 0.31%, with the price just above the pivot point at $2.31. This suggests a slight bullish bias as long as it remains above this level.

Immediate resistance is at $2.41, with higher targets at $2.48 and $2.55 if momentum builds. On the downside, support starts at $2.27, with further levels at $2.21 and $2.16.

The 50-day EMA at $2.23 supports near-term bullish sentiment, while the 200-day EMA at $2.21 reinforces a stable longer-term outlook.

A break below $2.31 could trigger sharper selling pressure, but as long as the price holds above this key level, the bulls remain in control.

WTI Oil Price Forecast

WTI Crude Oil (USOIL) is trading at $69.58, down 0.42%, and currently below key technical levels. The pivot point is at $70.58, indicating that staying below this level could sustain the bearish sentiment.

Immediate support lies at $68.45, followed by $67.17 and $65.20, offering potential downside targets. On the upside, resistance starts at $72, then $72.95, with the next significant barrier at $74.24.

Technical indicators are mixed. The 50-day EMA is at $69.44, just below the current price, suggesting near-term weakness, while the 200-day EMA at $72.69 reflects broader bearish sentiment.

A break above $70.58 could trigger a bullish reversal, but until then, the bias remains bearish.

Brent Oil Price Forecast

Brent Crude Oil (UKOIL) is currently trading at $73.29, down 0.61%, and is hovering just below its pivot point at $73.81. The bearish sentiment dominates as long as the price stays below this key level.

Immediate support is at $72.64, with further downside targets at $70.57 and $69.02 if the decline continues. On the upside, resistance starts at $74.80 and moves up to $76.23 and $77.44.

The 50-day EMA is at $72.71, indicating near-term weakness, while the 200-day EMA, at $76.10, suggests broader bearish momentum. A sustained break above $73.81 could shift the outlook towards a more bullish bias, but for now, the trend remains negative.