Natural Gas and Oil Forecast: NG Crashes Below 1.95; Is More Selling Coming?

Market Overview

Oil futures fell on Monday due to recession concerns in the United States, the largest oil consumer, overshadowing supply worries from Middle Eastern tensions. Asian markets also tumbled as investors fled risk assets, expecting interest rate cuts to boost economic growth.

Brent and WTI crude have both declined for four consecutive weeks, marking their longest losing streaks since November. Weak U.S. payrolls data added to existing concerns about Chinese demand, with declining diesel consumption in China weighing on prices.

OPEC+ plans to phase out voluntary production cuts, further increasing supply. However, geopolitical risks in the Middle East, including potential retaliatory actions by Iran and its allies, provided some support for oil prices.

This combination of factors impacts forecasts for both oil and natural gas, as market volatility remains high.

Natural Gas Price Forecast

 

Natural Gas (NG) is trading at $1.917, down 2.20% on the 4-hour chart, indicating persistent bearish momentum. The pivot point is set at $1.95, with immediate resistance at $2.02 and additional barriers at $2.09 and $2.17.

Key support levels are identified at $1.87, $1.82, and $1.78. The 50-day EMA at $2.06 and the 200-day EMA at $2.27 highlight strong resistance above current levels.

Market sentiment remains bearish below $1.95; however, a breakout above this pivot could signal a potential bullish reversal.

WTI Oil Price Forecast

As of today, USOIL is currently trading at $72.97, down 0.46%, as it navigates a bearish trend within a 4-hour chart timeframe. The pivot point is at $74.48, with immediate resistance at $76.28, followed by further resistance levels at $78.80 and $80.47. Support levels are identified at $72.43, $70.82, and $69.25.

The 50-day exponential moving average (EMA) is at $76.77, while the 200-day EMA stands at $79.04, both indicating strong resistance above current price levels. The market remains bearish below $74.48; however, a break above this pivot could signal a bullish reversal.

Brent Oil Price Forecast

Brent crude oil (UKOIL) is trading at $76.33, down 0.30% on the 4-hour chart. The pivot point is at $77.71, with immediate resistance at $79.10 and further resistance at $80.45 and $81.81. Support levels are at $74.75, $73.61, and $72.33.

The 50-day exponential moving average (EMA) is at $80.12, and the 200-day EMA is at $82.59, both suggesting resistance above the current price.

The market outlook remains bearish below $77.71, indicating continued pressure. A break above this pivot could shift the bias to bullish, but failure to do so may lead to further declines.