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Natural Gas and Oil Forecast: China’s Slowdown Hits $81.60 Oil, $2.17 Gas

By:
Arslan Ali
Updated: Jul 16, 2024, 11:13 GMT+00:00

Key Points:

  • Oil prices declined due to China's slow Q2 growth of 4.7%.
  • Fed's potential rate cuts may boost economic activity and oil demand.
  • Middle East tensions and Russian oil market balance add complexity.
Natural Gas and Oil Forecast: China’s Slowdown Hits $81.60 Oil, $2.17 Gas

In this article:

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) Price Chart
Natural Gas (NG) Price Chart

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

Brent Price Chart
Brent Price Chart

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.

About the Author

Arslan, a webinar speaker and derivatives analyst, has an MBA in Finance and MPhil in Behavioral Finance. He guides financial analysis, trading, and cryptocurrency forecasting. Expert in trading psychology and sentiment.

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