Natural Gas and Oil Forecast: Will Hurricane Francine Fuel a Price Surge?

Market Overview

Oil prices rose during Asian trade on Thursday, driven by concerns over Hurricane Francine disrupting U.S. oil production. The hurricane led to the shutdown of offshore platforms, accounting for 15% of U.S. oil production, which tightened supply.

However, concerns over weakening demand, highlighted by rising U.S. stockpiles and falling gasoline consumption, capped gains.

The impact of Hurricane Francine and geopolitical tensions are expected to support short-term gains in oil and natural gas prices, although demand worries remain a limiting factor for further upside.

Natural Gas Price Forecast

Natural Gas (NG) is trading at $2.272, up 0.08% on the day. The price is hovering near the pivot point at $2.29, which serves as a key resistance level. A break above this could trigger further upside toward the next resistance levels at $2.33 and $2.38.

However, the formation of a double top pattern around $2.29 suggests caution, as this level could act as a strong barrier.

On the downside, immediate support is at $2.21, followed by $2.17. The 50-day EMA sits at $2.20, indicating that the short-term trend is still bullish, while the 200-day EMA at $2.18 provides additional support.

WTI Oil Price Forecast

The US. Oil (USOIL) is trading at $67.63, showing a moderate gain of 0.54% on the day. The commodity is pushing above the pivot point of $67.10, indicating a potential bullish trend. If the price breaks above immediate resistance at $69.03, it could open the door to further upside, with next resistance levels at $70.73 and $72.00.

On the downside, key support sits at $65.20, with additional support levels at $63.73 and $62.56. The 200-day EMA at $73.57 suggests that USOIL still has room to climb but could face resistance as it approaches that level.

A move below $67.10 could signal renewed selling pressure, so traders should watch these levels closely.

Brent Oil Price Forecast

UK oil (UKOIL) is trading at $71.00, up 0.48% for the day. The price is testing the pivot point at $70.62, signaling potential for further bullish momentum if it can break above immediate resistance at $72.76.

A successful breach of this level could push the price higher to $73.48, with further resistance at $74.80. On the downside, support levels to watch are $68.65 and $67.26.

The 50-day EMA at $72.71 suggests that some resistance is ahead, but if UKOIL holds above $70.60, bullish momentum could strengthen.