Natural Gas and Oil Forecast: Geopolitical Tensions Drive Mixed Sentiment in Energy Markets

Market Overview

WTI crude oil futures dipped to around $76 per barrel on Tuesday, primarily due to profit-taking after recent highs driven by ongoing geopolitical tensions in the Middle East. Investors are closely watching potential escalations that could affect oil supply routes.

However, President Biden’s call for alternative strategies over direct strikes on Iranian oil facilities has somewhat alleviated concerns.

Additionally, OPEC’s spare capacity supports supply stability, countering fears of a severe market disruption. Meanwhile, demand concerns linger, especially in China, as markets seek policy direction to sustain economic activity and boost energy consumption.

Natural Gas Price Forecast

Natural Gas (NG) is showing some strength today, trading up 0.41% at $2.94. On the 4-hour chart, the commodity is holding above its pivot point of $2.72, acting as a solid support level.

The technical indicators hint at a potential bullish trend continuation, especially since the 50-day Exponential Moving Average (EMA) is positioned at $2.84, while the 200-day EMA sits at $2.68.

Immediate resistance levels to watch are $2.77, followed by $2.83 and $2.88, which could serve as key price targets if bullish momentum persists. However, if prices fall below $2.72, it could trigger a shift in sentiment, bringing immediate support levels at $2.68 and $2.66 into focus.

WTI Oil Price Forecast

U.S. Oil (USOIL) is trading at $75.96, down 1.67% on the day. The 4-hour chart shows oil prices struggling to maintain momentum after falling below the $77.32 resistance level. Despite this drop, USOIL remains above the pivot point at $75.50, indicating a cautiously bullish trend for now.

Immediate support sits at $74.37, followed by $73.59 and $72.57, which could become key areas to watch if the selling pressure intensifies.

On the upside, breaking through $77.32 could propel prices to test higher resistance at $78.47 and $79.47. With the 50-day EMA at $73.87 and the 200-day EMA at $71.41, the technical indicators suggest a mixed outlook, urging traders to remain cautious.

Brent Oil Price Forecast

UKOIL, currently trading at $79.70, is down 1.71% as it struggles to stay above the pivot point of $79.17 on the 4-hour chart. The price action suggests a neutral stance for now, with potential upside if the market can break through immediate resistance at $81.14.

Beyond that, higher resistance levels are marked at $81.96 and $82.80, which could pave the way for a stronger rally. On the downside, support at $78.29 and $77.44 will be critical to watch if selling pressure intensifies.

With the 50-day EMA at $77.39 and the 200-day EMA at $74.95, UKOIL remains in a cautiously bullish trend but needs to hold above $79.15 to sustain momentum.