Natural Gas and Oil Forecast: Prices Fall Less Than 1%, Downtrend Expected?

By:

Arslan Ali

Updated: May 21, 2024, 09:42 GMT+00:00

Key Points:

Oil prices fell due to expectations of sustained U.S. inflation and higher interest rates.
Political uncertainties in Iran and Saudi Arabia had minimal market impact ahead of OPEC+ meeting.
Both benchmarks declined less than 1% as Fed officials await clearer signs of slowing inflation.

In this article:

Natural Gas

+0.26%

WTI Oil

+2.31%

Brent Oil

+2.73%

Market Overview

Oil prices declined in early Asian trading on Tuesday, with expectations of sustained U.S. inflation and higher interest rates dampening consumer and industrial demand.

Both benchmarks fell less than 1% on Monday as Federal Reserve officials awaited clearer signs of slowing inflation before considering rate cuts. Analysts noted fears of weaker demand due to delayed rate cuts.

Political uncertainties in Iran and Saudi Arabia had little impact on the market. Investors are now focusing on the upcoming OPEC+ meeting on June 1, which will address output policy and potential extensions of voluntary production cuts.

Natural Gas Price Forecast

Natural Gas (NG) Price Chart

Natural Gas (NG) prices fell to $2.736, down 0.10%, in early trading. Key technical levels include a pivot point at $2.75. Immediate resistance is at $2.81, followed by $2.89 and $2.97.

On the downside, immediate support is at $2.63, with further support at $2.55 and $2.45. Technical indicators show the 50-day EMA at $2.45 and the 200-day EMA at $2.12.

The outlook remains bearish below $2.75, but a break above this level could signal a shift to a more bullish trend.

WTI Oil Price Forecast

WTI Price Chart

WTI Crude oil (USOIL) prices fell to $78.76, down 0.48%, in early trading. Key technical levels to watch include the pivot point at $79.84. Immediate resistance is seen at $80.67, followed by $81.52 and $82.29.

On the downside, immediate support is at $78.53, with further support at $77.70 and $76.65. Technical indicators show the 50-day EMA at $79.07 and the 200-day EMA at $80.48.

The outlook remains bearish below $79.84, but a break above this level could signal a shift to a more bullish trend.

Brent Oil Price Forecast

Brent Price Chart

Brent crude oil (UKOIL) prices fell to $83.15, down 0.56%, in early trading. Key technical levels include a pivot point at $83.51. Immediate resistance is at $84.51, followed by $85.82 and $86.88.

On the downside, immediate support is at $82.13, with further support at $81.04 and $80.05. Technical indicators show the 50-day EMA at $83.50 and the 200-day EMA at $84.99.

The outlook remains bearish below $83.51, but a break above this level could signal a shift to a more bullish trend.

For a look at all of today’s economic events, check out our economic calendar.

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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