Market Overview
Oil prices declined on Tuesday due to concerns about a slowing Chinese economy. The economy grew only 4.7% in Q2, missing expectations of 5.1%. This slow growth, driven by a property downturn and job insecurity, reduced refinery output by 3.7% in June.
Meanwhile, speculation that the U.S. Federal Reserve might cut interest rates by September, as indicated by Fed Chair Jerome Powell, provided some support. Lower interest rates could boost economic activity and oil demand.
Additionally, geopolitical tensions in the Middle East and comments from Russian officials about market balance added to the complex outlook for oil and natural gas.
Natural Gas Price Forecast
Natural Gas (NG) is currently priced at $2.17, down 0.46%. The 4-hour chart shows key price levels with the pivot point at $2.15. Immediate resistance is observed at $2.20, followed by $2.26 and $2.31.
Support levels are identified at $2.09, $2.05, and $2.01. The 50-day EMA stands at $2.34, while the 200-day EMA is at $2.51.
Above $2.15, a bullish outlook prevails; however, a drop below this level could trigger significant selling pressure.
WTI Oil Price Forecast
USOIL is trading at $81.60, down 0.43%. On the 4-hour chart, key levels include a pivot point at $81.95. Immediate resistance is at $82.56, followed by $83.07 and $83.72. Support levels are at $81.30, $80.76, and $80.20.
The 50-day EMA is $82.30, and the 200-day EMA is $80.99. A bearish outlook is expected below $81.95, but a break above this level could shift sentiment to bullish.
Brent Oil Price Forecast
UKOIL is currently priced at $84.59, down 0.28%. The 4-hour chart highlights key levels with a pivot point at $84.97. Immediate resistance is at $85.54, followed by $86.18 and $86.76. Support levels are identified at $84.43, $83.97, and $83.46.
The 50-day EMA is $85.24, while the 200-day EMA is $85.13. The outlook remains bearish below $84.97; a break above this level could shift momentum towards a bullish trend.
