Natural Gas and Oil Forecast: Falling U.S. Crude Stocks and China Stimulus Boost Sentiment

Market Overview

Oil prices rebounded from two-week lows as traders remained focused on geopolitical tensions and awaited key data on U.S. oil inventories. U.S. crude oil inventories dropped by 1.58 million barrels, defying expectations and providing short-term support for oil prices.

While prices dropped earlier this week due to downward revisions in global demand forecasts by OPEC and the IEA, the ongoing uncertainty in the Middle East continues to influence the market.

Additionally, investor attention is on China’s upcoming stimulus measures, which may impact broader market sentiment. U.S. crude and fuel stocks fell last week, providing short-term support for oil prices, while global economic concerns, particularly in Europe, also weigh on future price direction.

Natural Gas Price Forecast

Natural Gas (NG) is currently trading at $2.367, up by a modest 0.04%, but still hovering below its pivot point at $2.39. If prices break above this level, it could signal a shift to a more bullish trend, with immediate resistance at $2.46, followed by $2.53 and $2.60. On the downside, support is found at $2.31, with the next levels at $2.27 and $2.23.

Technically, NG is oversold, and a series of doji candles are forming, suggesting that the recent downtrend may be pausing. The 50-day EMA sits higher at $2.50, with the 200-day EMA at $2.61, creating resistance. NG remains bearish below $2.39, but a breakout above could trigger further upside momentum.

WTI Oil Price Forecast

USOIL prices are hovering at $70.67, down slightly by 0.06%. Currently, the market is trading below the key pivot point of $71.34, signaling bearish sentiment.

Immediate support can be found at $69.68, with the next levels at $68.69 and $67.67 if the price continues to slide. However, if buyers push prices higher, the first resistance to watch is $72.42, followed by $73.43 and $74.73.

Technically, the 50-day EMA sits above at $71.86, with the 200-day EMA even higher at $72.19, both adding to the resistance overhead. A break above the pivot point at $71.34 could trigger a shift to bullish momentum, but below this level, the trend remains bearish.

Brent Oil Price Forecast

Brent crude (UKOIL) is trading at $74.84, down slightly by 0.04%. It’s just below the key pivot point of $74.87, which is a significant level to watch. If prices break above this, we could see bullish momentum kick in, with resistance levels at $75.94, $76.85, and $78.26.

On the downside, immediate support is at $73.39, followed by $72.10 and $70.61 if the bearish pressure increases.

The 50-day EMA is at $75.60, while the 200-day EMA sits slightly higher at $75.75, creating additional overhead resistance. A double top pattern near the pivot is reinforcing this resistance. UKOIL remains bearish below $74.87, but a break above could shift the trend upward.