Natural Gas and Oil Forecast: Prices Surge Amid Geopolitical Tensions and Stimulus Hopes

Market Overview

Crude oil prices are experiencing upward momentum, supported by geopolitical tensions and market factors. The possibility of increased economic stimulus in China, including the issuance of 3 trillion yuan in special Treasury bonds, is boosting optimism. However, concerns about global oil supply are rising, with potential sanctions on Russian and Iranian crude exports.

OPEC+ production delays and lower-than-expected demand from China also contribute to price volatility. Despite these bullish factors, a rise in crude oil stocks and weakening global demand could limit the upside.

Key support levels are emerging as the market remains cautious amidst uncertainties.

Natural Gas Price Forecast

Natural Gas (NG) is trading at $3.94, up 3.15%, showing some strong momentum. The price is currently above the key pivot point at $3.83, suggesting a bullish outlook for the short term. Immediate resistance is at $4.17, with further upside potential toward $4.39.

On the downside, support is holding firm at $3.62, followed by $3.32. The 50-day Exponential Moving Average (EMA) at $3.66 and the 200-day EMA at $3.39 indicate a generally positive market structure, but the price must hold above $3.83 to maintain bullish momentum.

A break below this level could trigger a more bearish trend, making the next support levels critical.

WTI Oil Price Forecast

Crude oil (USOIL) is trading at $70.14, showing a 0.90% increase, and it’s hovering just above its pivot point at $69.51. This level is crucial for determining the short-term trend. Immediate resistance is at $70.48, with further upside potential at $71.46.

On the downside, key support levels are at $68.42 and $67.69. The 50-day Exponential Moving Average (EMA) is at $69.56, and the 200-day EMA is at $69.44, both reinforcing the price’s current consolidation.

If USOIL maintains momentum above $69.51, we could see continued bullish movement, but a break below this point could trigger selling pressure and lead to a deeper pullback.

Brent Oil Price Forecast

UK oil (UKOIL) is currently trading at $73.61, showing a 0.90% increase. It remains above the pivot point at $73.33, which will be a critical level to watch. Immediate resistance is at $74.55, with further upside potential targeting $75.27.

On the downside, support lies at $72.68 and $71.98. The 50-day and 200-day Exponential Moving Averages (EMAs) are both around $73.01 and $73.00, indicating price consolidation.

If UKOIL sustains above $73.33, we could see further bullish momentum. However, a break below this key level could lead to a sharp sell-off, with potential targets at the support levels.