Natural Gas and Oil Forecast: Will OPEC+ Extend Production Cuts into 2024?

Market Overview

Natural gas and oil markets remain volatile amid geopolitical tensions and anticipation surrounding OPEC+ decisions on supply cuts. Oil benchmarks dipped nearly 2% this week, partly due to a major futures sell-off and investor caution ahead of Thursday’s OPEC+ meeting, where extensions to production cuts are expected.

Despite recent fluctuations, analysts predict potential price recovery driven by seasonal demand and a broader economic rebound. Meanwhile, larger-than-expected U.S. crude stockpile draws offer some support, underscoring tightening supply dynamics.

The energy sector remains closely tied to geopolitical developments, with ongoing uncertainty keeping markets cautious in the near term.

Natural Gas Price Forecast

Natural Gas (NG) is trading at $3.01, down 0.43%, reflecting slight bearish momentum. Price action remains below the pivot point of $3.08, signaling potential downside risk. Immediate resistance is at $3.13, followed by $3.18 and $3.24, while support lies at $3.03, with further levels at $2.98 and $2.93.

The 50-day EMA at $3.08 aligns with the pivot, reinforcing its significance as a critical level to watch. The 200-day EMA at $3.16 suggests stronger resistance overhead.

Technical indicators suggest caution, with the current price staying below key levels. A recovery above $3.08 could trigger bullish momentum, targeting $3.13. Conversely, a breakdown below $3.03 might accelerate selling pressure toward $2.98.

WTI Oil Price Forecast

U.S. crude oil (USOIL) is trading at $68.49, down 0.21%, staying below its pivot point at $68.81, signaling a mildly bearish tone. Immediate resistance is at $69.22, followed by $69.67 and $70.32, while key support levels are $68.08, $67.68, and $67.38.

The 50-day EMA at $69.14 and the 200-day EMA at $69.09 reinforce resistance near the $69 level, creating a significant barrier for upward momentum.

Price action indicates hesitation as traders await confirmation of the next directional move. A breakout above $68.81 could signal bullish momentum, targeting $69.22. However, a sustained move below $68.08 may intensify selling pressure, pushing prices toward $67.38.

Brent Oil Price Forecast

Brent crude (UKOIL) is trading at $72.35, down 0.26%, reflecting a bearish tone below the pivot point at $72.54. Immediate resistance is positioned at $72.93, followed by $73.31 and $73.73.

On the downside, support levels are $71.87, $71.54, and $71.19, indicating key areas for traders to monitor. The 50-day EMA at $72.89 and 200-day EMA at $72.84 align with resistance, emphasizing downward pressure on prices.

Price action suggests a cautious market, with an upward trendline breakout signaling potential selling momentum. A break below $71.87 may confirm bearish dominance, while a recovery above $72.54 could encourage bullish sentiment