Natural Gas and Oil Forecast: Oil Below 200 EMA, More Selling Ahead?

Market Overview

Oil prices rebounded on Wednesday after three days of declines, driven by reports of a drop in U.S. crude and fuel stockpiles. The American Petroleum Institute indicated a fall of 1.923 million barrels in crude stocks and a 2.954 million barrel drop in gasoline inventories, suggesting steady demand.

Comments from U.S. Federal Reserve Chair Jerome Powell bolstered the likelihood of interest rate cuts, which could stimulate economic growth and increase oil consumption.

Meanwhile, Hurricane Beryl’s impact on Texas energy production was minimal. This data and sentiment have supported a positive outlook for both oil and natural gas prices.

Natural Gas Price Forecast

Natural Gas (NG) is trading at $2.342, monitoring the pivot point at $2.375. Immediate resistance levels are identified at $2.430, $2.465, and $2.508. These levels are critical barriers that could hinder upward momentum in the near term.

On the downside, immediate support is seen at $2.318, with subsequent support levels at $2.273 and $2.231. These support levels are essential for maintaining the current price structure and preventing further declines. The 50-day Exponential Moving Average (EMA) at $2.385 is currently acting as a support level, while the 200-day EMA at $2.559 is serving as a significant resistance level.

Given the current technical setup, traders should consider selling positions below $2.375 to capitalize on potential bearish movements.

WTI Oil Price Forecast

WTI Crude Oil (USOIL) is currently trading at $81.33, reflecting a slight decline. The market is closely observing the pivot point at $81.76, which will be pivotal in determining the next directional move. Immediate resistance is identified at $82.46, followed by $82.98 and $84.03.

On the downside, immediate support is found at $81.00, with additional support levels at $80.15 and $79.47. The 200-day Exponential Moving Average (EMA) at $81.57 is the first major resistance level, and the 50-day EMA at $82.43 is the next major resistance.

Given the current technical setup, traders should consider selling positions below $81.76 to take advantage of potential bearish movements.

Brent Oil Price Forecast

Brent Oil (UKOIL) is currently trading at $84.52, reflecting a slight decline. The pivot point at $85.05 is crucial for determining the next directional move. Immediate resistance levels are identified at $85.79, $86.77, and $87.64. These levels are key barriers that could impede upward momentum.

On the downside, immediate support is found at $84.05, with additional support levels at $83.50 and $82.54. The 50-day Exponential Moving Average (EMA) at $85.86 acts as a resistance level, while the 200-day EMA at $85.11 serves as support.

Given the current setup, traders should consider selling positions below $85.05 to capitalize on potential bearish movements.