Natural Gas and Oil Forecast: Volatility Looms as U.S. Elections and Fed Decisions Approach

Market Overview

Oil prices rebounded by over 1% on Thursday, nearly reversing recent losses as geopolitical tensions reignited concerns over supply disruptions. Despite mixed U.S. inventory data, crude has gained nearly 4% this week, offsetting last week’s significant drop.

Analysts point to growing uncertainty in global markets, with technical factors and rising geopolitical risks driving safe-haven demand for energy commodities.

The market’s heightened sensitivity, compounded by upcoming U.S. elections and potential Federal Reserve policy adjustments, continues to support volatility in oil and natural gas prices as traders brace for further price fluctuations.

Natural Gas Price Forecast

Natural Gas (NG) prices are hovering around $2.90, up 0.21%, showing a slight upward momentum. On the technical front, immediate resistance is seen at $2.44, followed by $2.50 and $2.55. If prices break above these levels, it could signal further gains.

On the downside, support lies at $2.30, with additional levels at $2.22 and $2.16. The 50-day EMA at $2.35 is a crucial pivot point—prices staying above this level would indicate a bullish trend.

However, if prices dip below it, we could see increased selling pressure, particularly with the 200-day EMA at $2.48 acting as a key resistance for upward movement. Keep an eye on these levels for any shifts.

WTI Oil Price Forecast

U.S. crude oil (USOIL) is currently trading at $71.68, up 0.98%, showing some positive movement in the short term. The key pivot point to watch is $71.23—staying above this level keeps the bullish trend intact. Immediate resistance is at $72.09, with additional resistance at $72.94 and $73.69.

If prices break through these levels, we could see further upward momentum. On the downside, immediate support is at $70.38, with deeper support levels at $69.36 and $68.44.

The 50-day EMA at $70.80 is acting as support, while the 200-day EMA at $71.39 signals additional strength. If prices drop below $71.23, expect increased selling pressure.

Brent Oil Price Forecast

UKOIL (Brent) is trading at $75.81, up 0.85%, maintaining its upward momentum. The key pivot point sits at $75.46, which will be critical in determining the short-term trend. Immediate resistance is noted at $76.28, with additional hurdles at $77.11 and $78.07.

If Brent can break above these levels, it may continue its bullish push. However, immediate support is at $74.62, with lower support zones at $73.77 and $72.85.

The 50-day EMA at $74.95 and the 200-day EMA at $75.25 both suggest stability, but a drop below the $75.46 pivot could shift sentiment toward selling pressure.