Natural Gas and Oil Forecast: Can OPEC+ Cuts and Geopolitical Risks Boost Prices?

Market Overview

Oil prices gained momentum on Monday, driven by fears of supply disruptions due to escalating geopolitical tensions in the Middle East. Concerns are mounting that potential conflict involving Iran, a major oil producer and OPEC member, could lead to supply constraints.

Last week, Brent and WTI dropped 3% and 5% respectively, as China’s recent economic stimulus failed to boost market confidence.

However, any further escalation in the region could significantly impact natural gas and oil forecasts, potentially pushing prices higher. Analysts are also watching for signals from the Federal Reserve and upcoming economic data, which could shape demand trends.

Natural Gas Price Forecast

Natural Gas (NG) is trading at $2.883, up 0.27%. Prices currently hover above the pivot point at $2.87, indicating a slightly bullish sentiment. If NG can hold above this level, it may push toward immediate resistance at $2.93, with the next targets set at $2.97 and $3.01.

The 50-day EMA at $2.80 is providing solid support, suggesting that buyers are still in control.

However, if prices fall below the pivot point, we could see a drop to the first support at $2.82 and further down to $2.78 and $2.72. The 200-day EMA at $2.60 remains a long-term support level. For now, the outlook stays bullish as long as NG holds above $2.85.

WTI Oil Price Forecast

WTI Crude Oil (USOIL) is trading at $68.53, down 0.13%. The price is hovering near the pivot point of $68.69, indicating a critical juncture. If USOIL breaks above $68.69, we could see it test immediate resistance at $69.35, followed by $69.99 and $70.75.

However, if it fails to hold above this level, a decline toward the first support at $67.62 could be in play, with further downside potential to $66.91 and $66.21.

The 50-day EMA at $68.38 is short-term support, while the 200-day EMA at $69.47 poses a significant resistance barrier. For now, the sentiment remains bearish below $68.69, but a sustained move above could signal renewed bullish momentum.

Brent Oil Price Forecast

Brent Crude Oil (UKOIL) is trading at $71.94, showing a slight uptick of 0.06%. The price is just below the pivot point at $72.34, which suggests that the market is leaning towards a bearish bias. If UKOIL fails to break above $72.34, we could see it drop to immediate support at $71.32, with further downside targets at $70.88 and $70.42.

On the upside, immediate resistance is $73.08, followed by $73.94 and $74.77. The 50-day EMA at $73.01 and the 200-day EMA at $73.58 are currently overhead, reinforcing resistance. If UKOIL breaks above $72.34, it could trigger more bullish momentum, but for now, the sentiment stays bearish below this key level.