Natural Gas and Oil Forecast: U.S. Crude Stocks Fall by 4.4M, NG Hits $2.18

Market Overview

Oil prices remained steady on Wednesday, with Brent crude hovering near a one-month low of $83.30 hit on Tuesday. This stability comes as weakening demand growth in China contrasts with the expected decline in U.S. oil stockpiles.

Concerns over Chinese demand weigh on sentiment, but U.S. inventory drawdowns help limit the downside. China’s economic growth slowed to 4.7% in Q2, its weakest since early 2023.

Additionally, a stronger U.S. dollar has pressured oil prices, making it more expensive for non-dollar investors. U.S. crude inventories fell by 4.4 million barrels, significantly more than the expected drop, supporting oil prices.

Natural Gas Price Forecast

Natural Gas (NG) is currently trading at $2.18, up 0.18%. The 2-hour chart’s pivot point is at $2.18, indicating a key support level. Immediate resistance levels are at $2.22, $2.26, and $2.31. On the downside, immediate support is at $2.15, with further support at $2.11 and $2.07.

Technical indicators show the 50-day Exponential Moving Average (EMA) at $2.24 and the 200-day EMA at $2.42.

In conclusion, the outlook for Natural Gas is bullish above the pivot point of $2.18. A break below this level could trigger a sharp selling trend.

WTI Oil Price Forecast

USOIL is currently trading at $80.63, reflecting a slight decline of 0.14%. The 2-hour chart highlights critical price levels, starting with a pivot point at $81.12. Immediate resistance is observed at $81.79, followed by additional resistance levels at $82.53 and $83.25.

On the downside, immediate support is noted at $80.12, with subsequent support levels at $79.48 and $78.86, which could act as buffers against sharp declines. From a technical perspective, the 50-day Exponential Moving Average (EMA) is $81.69, while the 200-day EMA stands at $81.73.

In conclusion, USOIL’s bearish stance remains solid as long as the price stays below the pivot point of $81.12. A break above this level could shift the market sentiment to bullish, targeting resistances at $81.79 and $82.53. However, if the price continues to trade below $81.12, the bearish trend will likely persist, with immediate support at $80.12 and further downside potential towards $79.48 and $78.86.

Brent Oil Price Forecast

UKOIL is trading at $83.60, down by 0.26%. On the 2-hour chart, the pivot point is at $84.08, which is crucial for determining the immediate market direction. Immediate resistance levels are identified at $84.61, $85.20, and $86.17. On the downside, immediate support is at $83.27, with further support at $82.55 and $81.78.

The technical indicators show the 50-day Exponential Moving Average (EMA) at $84.71 and the 200-day EMA at $84.99.

In conclusion, UKOIL’s outlook is bearish below the pivot point of $84.08. A break above this level could shift the bias to bullish, targeting higher resistance levels. Conversely, maintaining below $84.08 suggests continued downside potential.