Natural Gas and Oil Forecast: Oil Prices Up 2% This Week; More Upside Ahead?

Market Overview

Oil prices climbed in Asian trade on Friday, set for a third consecutive weekly increase, driven by expectations of a potential interest rate cut by the U.S. Federal Reserve.

Brent and WTI futures have gained nearly 2% this week, erasing earlier May losses. Analysts noted oil prices rose despite weak fundamentals, buoyed by a risk-on market sentiment and weaker U.S. labor market data.

A 64% probability of a Fed rate cut in September, as indicated by the CME FedWatch tool, has sparked optimism. Easing rates could boost consumer demand for oil, further impacting prices.

Adverse weather in key oil-producing regions and improved refining margins in Asia also contributed to the price increase.

Natural Gas Price Forecast

Natural Gas (NG) is trading at $2.710, up 0.33%. On the 4-hour chart, the pivot point is $2.67. Immediate resistance is at $2.76, followed by $2.81 and $2.86.

Immediate support is at $2.63, with further support at $2.57 and $2.52. The 50-day EMA is $2.78, while the 200-day EMA is $2.67.

The outlook remains bullish above the pivot point of $2.67, but a break below this level could trigger a sharp selling trend.

WTI Oil Price Forecast

The price of USOIL is currently trading at $82.23, up 0.58%. The 4-hour chart shows key price levels with the pivot point at $81.85. Immediate resistance is at $82.32, followed by $82.61 and $82.90.

On the downside, immediate support is at $81.48, with further support at $81.20 and $80.98. The 50-day EMA stands at $80.69, and the 200-day EMA is at $79.32.

The overall outlook remains bullish above the pivot point of $81.85, but a break below this level could signal a sharp selling trend.

Brent Oil Price Forecast

UKOIL is trading at $85.67, up 0.34%. The 4-hour chart highlights key levels with the pivot point at $85.29. Immediate resistance is at $86.20, followed by $86.79 and $87.40.

On the downside, immediate support is at $84.63, with further support at $83.90 and $83.34. The 50-day EMA is positioned at $84.50, while the 200-day EMA is at $83.46.

The outlook remains bullish above the pivot point of $85.29; however, a break below this level could trigger a sharp selling trend.