Natural Gas and Oil Forecast: Iran Instability Pushes Energy Up Over 0.15%

By:

Arslan Ali

Updated: May 20, 2024, 10:01 GMT+00:00

Key Points:

Oil prices rose slightly in Asian trade amid rescue attempts for Iran’s President.
U.S. purchase of 3.3M barrels for the Strategic Petroleum Reserve supported oil prices.
Brent crude remains above $80 due to Middle East instability concerns and market caution.

In this article:

Natural Gas

+0.26%

WTI Oil

+2.31%

Brent Oil

+2.73%

Market Overview

Oil prices rose slightly in Asian trade on Monday amid rescue attempts for Iran’s President following a helicopter crash. Crude prices held gains from last week due to prospects of U.S. interest rate cuts and improving demand in China.

The U.S. government’s purchase of 3.3 million barrels of oil to refill the Strategic Petroleum Reserve also supported prices. The crash of a helicopter carrying Iranian President Ebrahim Raisi raised concerns about stability in the Middle East, a key oil-producing region, keeping Brent crude above $80.

Upcoming Federal Reserve minutes and the OPEC+ meeting on June 1 add to market caution.

Natural Gas Price Forecast

Natural Gas (NG) is currently trading at $2.671, up 1.49%. The 4-hour chart highlights the pivot point at $2.62, a critical level for near-term price action. Immediate resistance is identified at $2.72, followed by $2.81 and $2.89. On the downside, immediate support lies at $2.57, with further support at $2.49 and $2.39.

The 50-day Exponential Moving Average (EMA) is positioned at $2.37, and the 200-day EMA stands at $2.08, indicating a bullish trend. The alignment of the 50 EMA above the 200 EMA supports continued upward momentum. Holding above the $2.62 pivot point reinforces the bullish outlook, while a break below this level could trigger a sharp selling trend.

WTI Oil Price Forecast

USOIL is currently trading at $79.59, down 0.15%. The 4-hour chart highlights the pivot point at $79.84, a critical level for near-term price action. Immediate resistance is at $80.67, followed by $81.52 and $82.29. On the downside, immediate support is found at $78.69, with further support levels at $77.70 and $76.65.

The 50-day Exponential Moving Average (EMA) is positioned at $79.06, while the 200-day EMA stands at $80.56. A triple top pattern is extending resistance at the $79.84 pivot point, indicating a significant hurdle for upward movement.

Brent Oil Price Forecast

UKOIL is currently trading at $84.08, up 0.18%. The 4-hour chart highlights the pivot point at $83.51, a crucial level for near-term price action. Immediate resistance is identified at $84.51, followed by $85.82 and $86.82. On the downside, immediate support lies at $82.13, with further support at $81.04 and $80.05.

The 50-day Exponential Moving Average (EMA) is positioned at $83.49, closely aligning with the pivot point, while the 200-day EMA stands at $85.08. The alignment of the 50 EMA near the pivot point suggests a strong support level, reinforcing the bullish outlook as long as prices remain above $83.50.

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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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