Natural Gas and Oil Forecast: Strong Support at $70 as WTI Eyes Resistance at $73

Market Overview

Oil prices climbed on Monday, driven by rising geopolitical tensions in the Middle East and last week’s unexpected U.S. interest rate cut, which many believe will fuel demand. There are concerns about potential supply issues from the region, while U.S. production has also dipped due to Hurricane Francine.

These factors have pushed prices higher, though a slower economic outlook in both China and the U.S. has kept further gains in check.

The U.S. Federal Reserve’s rate cut has led to optimism for increased energy demand but has also raised worries about the strength of the labor market, casting uncertainty on the overall energy outlook for oil and natural gas.

Natural Gas Price Forecast

Natural Gas (NG) is trading at $2.474, up by 1.63%. The pivot point is set at $2.44, and as long as prices stay above this level, the bullish trend remains intact. Immediate resistance sits at $2.54, followed by $2.59 and $2.65 if the upward momentum continues.

On the downside, support levels are at $2.36, with additional safety nets at $2.28 and $2.22. The 50-day EMA is providing solid backing at $2.33, while the 200-day EMA at $2.24 offers further long-term support.

If prices drop below $2.44, we could see a shift towards a bearish trend, but for now, the bias remains positive above the pivot.

WTI Oil Price Forecast

WTI Crude Oil (USOIL) is trading at $71.54, up by 0.52%. It’s holding above a key pivot level at $70.54, which is worth keeping an eye on. If oil prices push through the first resistance at $71.88, we might see a move higher, possibly targeting $72.95 and then $74.24.

On the downside, there’s support around $68.45, which should provide a cushion if the price dips. Beneath that, $67.17 and $65.20 are the next lines of defense.

The 50-day EMA, sitting at $70.04, is reinforcing the current bullish trend, but if oil drops below $70.50, we could see some sharper selling pressure kick in.

Brent Oil Price Forecast

Brent Crude Oil (UKOIL) is currently trading at $74.99, up by 0.46%. The key level to watch here is $74.02, which acts as the pivot point. If prices can hold above this level, we could see a test of resistance at $75.19, and potentially even higher levels like $76.24 and $77.45.

On the other hand, if the price drops, immediate support is at $72.39, with further support at $71.05 and $69.84. The 50-day EMA at $73.50 is reinforcing the bullish trend, while the 200-day EMA at $75.78 looms as a potential hurdle.

Overall, as long as prices stay above $74.02, the outlook remains bullish, but a drop below that could trigger a more significant pullback.