Natural Gas and Oil Forecast: Crude Stockpiles Rise, WTI Falls to $78.25; What’s Next?

By:

Arslan Ali

Updated: Jun 13, 2024, 09:30 GMT+00:00

Key Points:

Oil prices fell Thursday as the Fed delayed potential rate cuts to December.
U.S. crude stockpiles rose more than expected, driven by higher imports.
The International Energy Agency warned of future excess supply, pressuring prices.

In this article:

Natural Gas

+0.26%

WTI Oil

+2.31%

Brent Oil

+2.73%

Market Overview

Oil prices declined early Thursday as investors processed the U.S. Federal Reserve’s decision to delay potential interest rate cuts to December. Higher borrowing costs typically dampen economic growth and oil demand.

Fed Chair Jerome Powell noted inflation has decreased without significantly harming the economy. U.S. crude stockpiles rose more than expected, driven by higher imports, and fuel inventories also increased.

A bearish report from the International Energy Agency, warning of future excess supply, further pressured prices. This affects the natural gas and oil forecast by highlighting potential decreased demand and increased supply, leading to a bearish outlook for energy markets.

Natural Gas Price Forecast

Natural Gas (NG) Price Chart

Natural Gas (NG) is currently trading at $3.025, up 0.16%. The key pivot point to watch is $3.00. Immediate resistance levels are at $3.17, $3.26, and $3.35, indicating potential upward targets. On the downside, immediate support levels are at $2.88, $2.80, and $2.72.

The 50-day Exponential Moving Average (EMA) is at $2.90, suggesting a bullish trend as the current price is above this level. The 200-day EMA is at $2.55, further supporting the bullish outlook.

In conclusion, NG shows a bullish outlook above the $3.00 pivot point. A break below this level could lead to a sharp selling trend.

WTI Oil Price Forecast

WTI Price Chart

USOIL is currently priced at $78.23, reflecting a slight decrease of 0.07%. The key pivot point to watch is $77.99, which is crucial for determining the next market direction.

Immediate resistance levels are identified at $78.73, $79.26, and $80.26, indicating potential upward targets. On the downside, immediate support levels are set at $77.20, $76.41, and $75.41, which could act as safety nets if the price declines.

Technical indicators show mixed signals. The 50-day Exponential Moving Average (EMA) is positioned at $76.93, suggesting a bullish trend as the current price is above this average. However, the 200-day EMA stands at $78.17, indicating a potential consolidation phase.

In conclusion, USOIL presents a bullish outlook above the $77.99 pivot point. Conversely, a break below $77.99 could lead to a sharp selling trend.

Brent Oil Price Forecast

Brent Price Chart

UKOIL is currently priced at $82.30, down 0.12%. The pivot point to watch is $81.95. Immediate resistance levels are at $82.83, $83.70, and $84.66, indicating potential upward targets. On the downside, immediate support levels are set at $81.17, $80.32, and $79.31.

The 50-day Exponential Moving Average (EMA) is at $81.04, suggesting a bullish trend as the price remains above this level. However, the 200-day EMA is at $82.48, indicating potential resistance.

In conclusion, UKOIL shows a bullish outlook above the $81.95 pivot point. A break below this level could lead to a sharp selling trend.

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About the Author

Arslan Aliauthor

Arslan is a finance MBA and also holds an MPhil degree in behavioral finance. An expert in financial analysis and investor psychology, Arslan uses his academic background to bring valuable insights about market sentiment and whether instruments are likely to be overbought or oversold.

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