Natural Gas and Oil Forecast: Election Uncertainty and OPEC+ Moves Impact Prices

Market Overview

Energy markets are trading cautiously as geopolitical tensions and a series of pivotal events, including the U.S. election, loom over market sentiment. Oil prices held steady following a 2% rise, bolstered by OPEC+’s decision to delay production hikes amid weak demand and increased non-OPEC supply.

Analysts note that uncertainty around the election outcome, potential fiscal policies in China, and a seasonal Gulf hurricane impacting U.S. oil output may keep traders on the sidelines.

For now, technical indicators suggest that crude oil needs to breach key resistance levels to trigger renewed buying interest.

Natural Gas Price Forecast

Natural Gas (NG) is trading at $2.88, up 0.38%, showing signs of resilience above the pivot point at $2.76. We’re seeing a potential bullish setup, thanks to a “tweezers bottom” pattern forming around this pivot area, which often hints at an upcoming uptrend.

If prices can break through the immediate resistance at $2.83, we may see upward momentum toward $2.87, with further potential at $2.91.

On the downside, support sits at $2.72, with stronger floors at $2.68 and $2.64. The 50-day EMA at $2.72 provides additional support, while the 200-day EMA at $2.65 reinforces a bullish stance as long as prices remain above these levels.

WTI Oil Price Forecast

U.S. crude oil (USOIL) is trading slightly lower at $71.36, slipping 0.40% as the market maintains a cautious stance, awaiting key updates on U.S. election results. Prices have been in a sideways range, with $71.27 acting as a pivot point.

If oil holds above this level, we could see an attempt to break the immediate resistance at $71.81, potentially pushing toward $72.31 and $72.77.

On the downside, support is positioned at $70.76, with further layers at $70.21 and $69.79. The 50-day EMA at $70.83 and the 200-day EMA at $70.03 are lending moderate support, keeping short-term momentum neutral-to-bullish.

Brent Oil Price Forecast

UK oil (UKOIL) is trading at $75.91, down 1.91%, as it struggles to break above a key pivot at $76.08. This level, coupled with a downward trendline, has been limiting any strong upward momentum.

If UK oil manages to breach this resistance, we could see a rally towards $76.53, with further targets at $77.00 and $77.44.

On the downside, immediate support sits at $75.59, with additional support at $75.11, where the 200-day EMA also provides reinforcement, and deeper support at $74.60.

The 50-day EMA at $75.13 hints at a neutral-to-bearish stance, indicating sellers might dominate unless we see a decisive break above $76.