Natural Gas and Oil Forecast: Will Brent Break $75 as Bullish Sentiment Gains Strength?

Market Overview

Oil prices eased slightly on Friday but are set to close the week higher, supported by U.S. interest rate cuts and declining stockpiles. The U.S. Federal Reserve’s decision to cut rates by 50 basis points boosted economic optimism, signaling potentially higher energy demand.

Additionally, a drop in U.S. crude inventories and rising geopolitical tensions in the Middle East are propping up prices.

However, weaker demand from China’s slowing economy and refinery output is capping significant gains. Analysts predict oil prices will remain in the $70-$75 range through the next quarter but could see declines in 2025.

Natural Gas Price Forecast

Natural Gas (NG) is trading at $2.351, down 0.04% for the session, hovering just below its pivot point of $2.36. Immediate resistance lies at $2.43, with further targets at $2.48 and $2.54 if bullish momentum picks up.

On the downside, key support is found at $2.28, with additional levels at $2.22 and $2.16, which could signal a potential sell-off if broken. The 50-day EMA at $2.30 offers short-term support, while the 200-day EMA at $2.22 reinforces a broader support zone.

As long as prices stay below the pivot point, bearish sentiment could dominate, but a break above $2.36 might signal renewed bullish momentum.

WTI Oil Price Forecast

WTI Crude Oil (USOIL) is trading at $70.97, down by 0.14%, but holding just above its pivot point of $70.54. This level serves as a critical support zone, and as long as prices stay above it, the outlook remains bullish. The 50-day EMA at $69.74 provides additional support, reinforcing this bullish sentiment.

Immediate resistance is seen at $71.88, followed by $72.95, with $74.24 as a more extended target if upward momentum continues.

On the downside, key support is located at $68.45, and a break below that could lead to more selling pressure.

Brent Oil Price Forecast

Brent Crude Oil (UKOIL) is trading at $74.66, down 0.29% on the day but holding above the key pivot point at $74.02. This level is crucial, as staying above it suggests a bullish outlook. The 50-day EMA at $73.18 provides solid support, indicating buyers are still in control.

Immediate resistance is seen at $75.19, followed by $76.24, with a further target at $77.45 if momentum continues.

On the downside, key support lies at $72.39, with further levels at $71.05 and $69.84. The upward channel supports the buying trend, and the formation of a bullish engulfing candle hints at a potential breakout.