Natural Gas and Oil Forecast: Oil Prices Dip Over 1% Amid OPEC+ Supply Boost

By:

Arslan Ali

Published: Jun 5, 2024, 05:40 GMT+00:00

Key Points:

Oil prices dropped to four-month lows in Asia following OPEC+ supply increase decision.
Brent crude pressured by OPEC's Q4 2024 supply boost plan amidst weak demand signals.
U.S. crude stocks unexpectedly rose over 4 million barrels, adding market volatility.

In this article:

Natural Gas

+0.26%

WTI Oil

+2.31%

Brent Oil

+2.73%

Market Overview

Oil prices fell to their lowest levels since February, hovering near four-month lows in Asia on Wednesday. This decline followed an OPEC+ decision to increase supply from October and a rise in U.S. crude and fuel stocks.

Brent crude faced pressure as markets perceived OPEC’s plan to add 500,000 barrels per day in Q4 2024 as a commitment, despite weakening demand signals. Saudi Arabia indicated potential flexibility in this plan if demand does not meet expectations.

The American Petroleum Institute reported a surprising increase in U.S. crude stocks by over 4 million barrels, contrary to analysts’ predictions. This bearish data impacts the forecast for both oil and natural gas markets, indicating potential volatility ahead.

Natural Gas Price Forecast

Natural Gas (NG) Price Chart

Natural Gas (NG) prices rose to $2.64, up 2.44%, on the four-hour chart. Key price levels include a pivot point at $2.59. Immediate resistance is at $2.72, with further resistances at $2.80 and $2.92. Support levels are at $2.48, followed by $2.39 and $2.32.

Technical indicators show the 50-Day Exponential Moving Average (EMA) at $2.64 and the 200-Day EMA at $2.38.

In conclusion, NG remains bullish above the pivot point of $2.59. A break below this level could trigger substantial selling pressure, emphasizing the importance of maintaining this support level.

WTI Oil Price Forecast

WTI Price Chart

USOIL‘s price dipped to $73.17, down 0.89%, on the four-hour chart. Key price levels include a pivot point at $73.38. Immediate resistance stands at $74.91, with further resistances at $76.08 and $77.10. Support levels are at $71.65, followed by $70.40 and $68.87.

Technical indicators show the 50-Day Exponential Moving Average (EMA) at $77.46 and the 200-Day EMA at $79.26. The current RSI value is pending.

In conclusion, USOIL remains bullish above $73. A breach below this pivot could lead to significant selling pressure, highlighting the critical nature of this support level.

Brent Oil Price Forecast

Brent Price Chart

UKOIL‘s price increased to $77.48, up 0.34%, on the four-hour chart. Key price levels include a pivot point at $76.75. The immediate resistance is at $78.60, with further resistances at $79.77 and $80.62. Support levels are at $75.52, followed by $74.32 and $73.01.

Technical indicators show the 50-Day Exponential Moving Average (EMA) at $80.74 and the 200-Day EMA at $83.25. In conclusion, UKOIL remains bullish above the pivot point of $76.75.

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About the Author

Arslan Aliauthor

Arslan is a finance MBA and also holds an MPhil degree in behavioral finance. An expert in financial analysis and investor psychology, Arslan uses his academic background to bring valuable insights about market sentiment and whether instruments are likely to be overbought or oversold.

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