Natural Gas and Oil Forecast: Uptrend Supports WTI at $80.68; Buy Now?

Market Overview

Oil prices rose during Asian trade on Wednesday, driven by Middle East geopolitical risks and anticipated inventory drawdowns in the peak third quarter demand season.

Despite a surprising increase in U.S. stockpiles, market sentiment remains bullish, expecting demand to offset supply concerns. Analysts project a 1.5 million barrels per day deficit in the third quarter due to OPEC+ cuts and seasonal demand.

This outlook supports both natural gas and oil prices, despite short-term pressures from a stronger dollar and bearish inventory data.

Natural Gas Price Forecast

Natural Gas (NG) is trading at $2.85, down 0.04%. The 4-hour chart indicates a pivot point at $2.82, crucial for market direction. Immediate resistance levels are at $2.88, $2.94, and $3.00.

Immediate support is at $2.78, followed by $2.70 and $2.64. Technical indicators show the 50-day EMA at $2.81 and the 200-day EMA at $2.66, suggesting a cautious outlook.

The overall trend remains bearish below the pivot point of $2.82. However, breaking above this level could boost bullish momentum, while staying below may continue the selling pressure.

 

WTI Oil Price Forecast

WTI Crude Oil (USOIL) is currently trading at $81.27, up 0.62%. The 4-hour chart reveals a pivot point at $80.68, which is crucial for determining the market direction. Immediate resistance is at $81.80, followed by $82.35 and $83.05.

On the downside, immediate support is at $80.23, with further levels at $79.52 and $78.76. Technical indicators show the 50-day EMA at $80.25 and the 200-day EMA at $79.05, indicating a bullish trend.

Overall, maintaining a position above the pivot point of $80.68 supports a bullish outlook, while a break below this level could trigger a sharp selling trend.

Brent Oil Price Forecast

UKOIL is currently trading at $84.63, up 0.58%. The 4-hour chart shows a pivot point at $84.29, crucial for determining market direction. Immediate resistance is at $85.19, followed by $85.65 and $86.19.

On the downside, immediate support is at $83.83, with further levels at $83.28 and $82.53. Technical indicators reveal the 50-day EMA at $84.23 and the 200-day EMA at $83.28, indicating a bullish trend.

The outlook remains bullish above the pivot point of $84.29. However, a break below this level could trigger a sharp selling trend.