Natural Gas and Oil Forecast: Oil Nears $77.40 as U.S. Crude Drops 3.9M Barrels

Market Overview

Oil prices rebounded on Wednesday, ending a three-session decline due to falling U.S. crude inventories and supply risks from Canadian wildfires. The American Petroleum Institute reported a fourth consecutive week of declining U.S. crude, gasoline, and distillate inventories, indicating strong demand.

Wildfires in Canada further supported prices by disrupting production. ING analysts suggest the market is nearing oversold territory and predict higher prices in Q3 due to supply deficits.

Crude stocks fell by 3.9 million barrels, gasoline by 2.8 million, and distillates by 1.5 million. This marks the first four-week decline in U.S. crude stocks since September 2023.

This impacts natural gas and oil forecasts by highlighting potential upward price pressure due to supply constraints and robust demand.

Natural Gas Price Forecast

Natural Gas (NG) is at $2.147, down 0.28%. On the 4-hour chart, the pivot point is $2.18. Immediate resistance levels are at $2.26, $2.30, and $2.35. Support levels are at $2.13, $2.08, and $2.02.

The 50-day EMA is $2.17, while the 200-day EMA is $2.30. The outlook is bearish below $2.18; a break above this level could signal a bullish trend. Monitor these key price levels for potential shifts in market direction.

WTI Oil Price Forecast

WTI crude oil (USOIL) is currently trading below its 50-day and 200-day exponential moving averages, indicating a bearish trend. The $77.90 level serves as a pivotal point.

A break below this level could exacerbate the downward momentum, with potential support levels at $76.88, $76.10, and $75.19.

Conversely, a surge above $77.90 could invalidate the bearish outlook and signal a potential rally towards $79.11, $80.16, and $81.31. WTI’s immediate direction hinges on the $77.90 pivot point.

Brent Oil Price Forecast

Brent crude oil (UKOIL) stands at $81.43, down 0.29%. On the 4-hour chart, the pivot point is $81.56. Immediate resistance levels are at $82.52, $83.18, and $83.88. Support levels are at $80.56, $79.98, and $79.41. The 50-day EMA is $82.79, while the 200-day EMA is $84.20.

The outlook remains bearish below $81.56; a break above this level could indicate a shift to a bullish trend. Stay vigilant for movements around these key price levels.