Natural Gas and Oil Forecast: Oil at $78.65, Crude Demand Soars

Market Overview

Oil prices surged in Asian trading on Thursday, building on the previous day’s gains following the assassination of Hamas leader Ismail Haniyeh in Tehran. His death, coupled with the earlier killing of a top Hezbollah commander in Beirut, has heightened fears of a broader Middle East conflict.

The potential involvement of Iran in the Israel-Hamas war raises concerns about disruptions in oil supply, especially given Iran’s control over the Strait of Hormuz, a critical passage for 15-20% of the global oil supply.

In addition, U.S. crude stockpiles fell by 3.4 million barrels, and a weaker dollar boosted oil demand. However, weak Chinese manufacturing data limits the upside potential for oil prices. These geopolitical and economic factors are impacting both natural gas and oil forecasts, with increased volatility expected in the short term.

Natural Gas Price Forecast

Natural Gas (NG) is currently priced at $2.056, marking a 0.78% increase. On the 4-hour chart, the pivot point is positioned at $2.09. Immediate resistance levels are at $2.15, $2.20, and $2.26, indicating potential upside targets.

Support is found at $1.99, with additional support at $1.92 and $1.87, suggesting downside risk if the price falls. The 50-day Exponential Moving Average (EMA) is $2.11, and the 200-day EMA is $2.30, highlighting a bearish trend in the longer term.

The outlook is bullish above $1.99, but a break below this support could trigger a sharp selling trend.

WTI Oil Price Forecast

The current price of WTI crude oil (USOIL) stands at $78.64, showing a slight increase of 0.03%. The chart timeframe is set to 4 hours, providing a detailed view of the recent price movements. The pivot point is at $78.71, which is a crucial level to watch.

Immediate resistance is found at $80.11, with further resistance levels at $81.28 and $82.86. On the downside, immediate support is at $77.05, followed by $75.99 and $74.63.

Technical indicators show the 50-day Exponential Moving Average (EMA) at $77.64, while the 200-day EMA is at $79.46. These moving averages indicate the overall trend and potential reversal points. In conclusion, USOIL remains bearish below the pivot point of $78.71.

Brent Oil Price Forecast

Brent crude oil (UKOIL) is currently priced at $81.45, reflecting a decline of 0.12%. The 4-hour chart indicates that the pivot point is positioned at $80.75. Key resistance levels are set at $81.96, $83.19, and $84.18, suggesting potential upward targets.

On the downside, immediate support is found at $79.68, followed by $78.79 and $77.87. The 50-day Exponential Moving Average (EMA) stands at $81.03, while the 200-day EMA is at $83.05, indicating a possible bearish crossover.

Overall, the outlook remains bullish above $80.75, but a breach below this level could trigger a sharp selling trend.