Natural Gas and Oil Forecast: Will OPEC+ Delays and Gulf Storm Boost Prices?

Market Overview

WTI crude oil futures dropped to $68.5 per barrel on Tuesday as weak demand from China and geopolitical tensions weighed on the market. Despite supply disruptions from a Gulf storm, concerns over China’s sluggish economy and reduced energy consumption in Europe and the US continue to pressure oil prices.

Additionally, OPEC+ delayed its production increase, fueling oversupply fears. Tropical Storm Francine, expected to become a hurricane, has further affected operations in Texas ports, adding to supply challenges.

These factors are also likely to impact Natural Gas forecasts, as both markets experience downward pressure amidst global uncertainty.

Natural Gas Price Forecast

Natural Gas (NG) is trading at $2.137, down 0.26%, and sitting below its pivot point of $2.17. With both the 50-day and 200-day Exponential Moving Averages (EMAs) converging around $2.17, this level is critical for price direction.

A break above $2.17 could shift momentum to the upside, with immediate resistance at $2.22 and further targets at $2.27 and $2.33. However, the recent upward trendline breakout suggests a continuation of the bearish trend.

Immediate support lies at $2.12, with stronger support at $2.08 and $2.03. Unless Natural Gas breaks above $2.17, the bearish bias is likely to persist, keeping downward pressure on prices.

WTI Oil Price Forecast

The US. Oil (USOIL) is trading at $68.59, down 0.33% for the day. The price remains below the pivot point of $68.84, signaling a bearish tone in the short term. Immediate resistance stands at $70.73, aligning closely with the 50-day Exponential Moving Average (EMA) at $70.76.

If prices fail to break this level, further downside is likely. Immediate support is at $67.23, with a stronger floor at $65.81. The 200-day EMA at $74.41 looms as a significant barrier to any bullish recovery.

Overall, USOIL remains in a downward channel, and unless it breaks above $68.85, the bearish outlook remains dominant.

Brent Oil Price Forecast

UKOIL is trading at $71.76, down 0.25% for the day, sitting just below its pivot point at $72.16. The price remains in a downward channel, signaling a bearish outlook unless UKOIL can break above this level.

Immediate resistance lies at $73.48, with further resistance at $74.80, aligning closely with the 50-day Exponential Moving Average (EMA) of $74.19. On the downside, key support is at $70.94, followed by stronger support at $69.97.

The bearish sentiment remains strong unless UKOIL breaks above $72.16, which could open the door for more bullish momentum.