Natural Gas and Oil Forecast: Chinese Demand Falls, Will WTI Continue to Drop?

Market Overview

Oil prices edged up slightly on Friday but are poised for a third consecutive weekly decline due to weak demand from China and expectations of a Gaza ceasefire.

Despite recent gains driven by stronger-than-expected U.S. economic growth in Q2, oil benchmarks have dropped about 5% over the past three weeks. Brent is marginally lower, and WTI is down over 2% this week.

China’s apparent oil demand fell by 8.1% in June to 13.66 million barrels per day, raising concerns about consumption. Additionally, hopes for an end to the Gaza conflict have also pressured prices.

Natural Gas Price Forecast

Natural Gas (NG) is trading at $2.057, up 0.14%. The 4-hour chart shows a pivot point at $2.04, indicating a crucial support level. Immediate resistance is at $2.11, followed by $2.17 and $2.24. On the downside, immediate support is found at $1.99, with further support at $1.95 and $1.91.

The 50-day Exponential Moving Average (EMA) stands at $2.16, and the 200-day EMA is at $2.37. The outlook remains bullish above $2.04; however, a break below this level could trigger significant selling pressure. Traders should monitor these key levels closely.

WTI Oil Price Forecast

WTI crude oil (USOIL) is currently trading at $78.39, reflecting a slight increase of 0.08%. The 4-hour chart indicates a pivot point at $77.75, which acts as a crucial support level.

Immediate resistance is observed at $78.68, followed by additional resistance levels at $79.87 and $81.31. On the downside, support levels are identified at $76.37, $75.20, and $74.25.

Technical indicators highlight that the 50-day Exponential Moving Average (EMA) stands at $79.02, while the 200-day EMA is positioned at $80.24. These indicators suggest a bullish outlook as long as the price remains above the pivot point of $77.75.

Brent Oil Price Forecast

Brent crude oil (UKOIL) is trading at $82.47, up 0.07%. The 4-hour chart shows a pivot point at $82.64, acting as a crucial support level. Immediate resistance is at $83.18, with further resistance levels at $83.82 and $84.45. On the downside, support is found at $81.68, $80.89, and $80.06.