Natural Gas and Oil Forecast: NG Slips 0.80%; Time for Bullish Bounce?

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Updated: Jul 3, 2024, 09:57 GMT+00:00

Key Points:

Oil prices rose on Wednesday due to significant U.S. crude inventory draw.
U.S. crude inventories fell by 9.163 million barrels, surpassing analyst expectations.
Middle East tensions persist, posing risks to oil and natural gas market forecasts.

Natural Gas and Oil Forecast: NG Slips 0.80%; Time for Bullish Bounce?

Market Overview

Oil prices increased on Wednesday after industry data revealed a larger-than-expected drop in U.S. crude inventories, while tensions in the Middle East also influenced the market. Both benchmarks had declined on Tuesday as Hurricane Beryl’s potential impact on Gulf of Mexico production appeared minimal.

U.S. crude inventories fell by 9.163 million barrels for the week ending June 28, supporting prices, though gasoline stocks rose by 2.468 million barrels.

Analysts had anticipated a smaller draw. Meanwhile, the ongoing conflict in the Middle East continues to pose risks, affecting the natural gas and oil market forecasts.

Natural Gas Price Forecast

Natural Gas (NG) Price Chart

Natural Gas (NG) is currently priced at $2.44, down 0.81%. The 4-hour chart reveals key price levels with the pivot point at $2.48. Immediate resistance stands at $2.53, followed by $2.59 and $2.64. Support levels are identified at $2.42, $2.36, and $2.32.

Technical indicators show the 50 EMA at $2.56 and the 200 EMA at $2.71, indicating a bearish trend. NG remains bearish below $2.48. A break above this level could shift the bias to bullish while remaining below it suggests continued downside pressure.

WTI Oil Price Forecast

WTI Price Chart

Today, USOIL is currently trading at $83.13, marking a slight increase of 0.03%. The chart timeframe is set at 2 hours, providing a detailed view of the recent price action.

Key price levels to watch include the pivot point at $82.90. Immediate resistance is found at $83.40, with subsequent resistance levels at $83.75 and $84.31. On the downside, immediate support is at $82.40, followed by $81.89 and $81.39.

Technical indicators show the 50 EMA at $82.52 and the 200 EMA at $80.64, suggesting a bullish trend.

Brent Oil Price Forecast

Brent Price Chart

UKOIL is trading at $86.61, up 0.12%. The 4-hour chart indicates a clear trend. Key levels to watch include the pivot point at $86.18. Immediate resistance is at $87.40, with further resistance at $87.87 and $88.27. Support levels are $85.69, $85.15, and $84.70.

The 50 EMA is currently at $85.91, while the 200 EMA stands at $84.35, signaling a bullish outlook. UKOIL is bullish above $86.18, but a break below this level could trigger a sharp selling trend.

About the Author

Arslan Aliauthor

Arslan, a webinar speaker and derivatives analyst, has an MBA in Finance and MPhil in Behavioral Finance. He guides financial analysis, trading, and cryptocurrency forecasting. Expert in trading psychology and sentiment.